Kids Clubs of America Problem 14-7

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Kids Clubs of America Problem 14-7
Notes on Net Assets. The following items are taken from the financial statements…

SKU: ACCT 567 Notes on Net Assets Problem 14-7 Categories: , , Tags: , ,

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Kids Clubs of America Problem 14-7

Kids Clubs of America Problem 14-7

 ACCT 567 Homework A+

The following items are taken from the financial statements of the Kids Clubs of America for the years ending December 31, 2011, and 2010, with related notes.

Required

  1. Explain what the term board-designated, unrestricted net assets means. What does the board plan to do with these net assets? Can board members change their minds in future years?
  2. Describe the types of restrictions that donors have placed on net assets. How much of those gifts are restricted for a period of time as opposed to purpose?
  3. If an unexpected need arises, can the board of directors decide to spend donor-restricted funds in ways other than the donor indicated when the contribution was made?