( D ) Net Assets For its balance sheet , we come to know that it has divided its net assets into two part .
i ) Unrestricted Assets It means , maximum donation and other assets which has received in cash or in-kind , are unrestricted . Organization can use any part of its mission .
( F ) Temporary Restricted Assets Money and current assets can be used on some restriction . It means specific cash can be used for specific part of mission of organisation .
2nd Statement of Activities
Statement of activities is just like income and expenditure statement of Wikimedia . Everything in it is simple to understand . But as user of Wikipedia , I am interested to know the total operating cost for operating Wikipedia website . $ 10.2 millions are its total expenditures and its total revenue is $ 17.9 million . It means net surplus of $ 7.7 million which is still very very low from for-profit organisation like Google other . So , we have to come forward to donate to this great and educational notfor-profit organisation .
3rd Cash Flow Statement
For calculating cash from operation , organisation has adjusted donation of common stock and donation of equipment because both are non cash revenue part of organisation . For knowing net cash flow from operation , we need to adjust non-cash operating items . When it has made its statement of activities , all outstanding expenses are added in expenses , it means surplus on accrual basis . Now as per cash basis , it has deducted from net surplus . When it has made its statement of activities , all advance but cash expenses are deducted and now we will deduct all these advance expenses . Like this some advance and outstanding incomes have been adjusted . All other things of cash flow of this organisation is easy to understand .
Receipts and payments accounting means to record all cash and bank receipts and payments . We can maintain receipts and payments accounting by making receipts and payments account . It is prepared in non profit organisation . Its format is just like cash book of business . In debit side , we show all cash and bank receipts and in the credit side , we show all