Cash

Not security deposits or restricted money--Cash is the most liquid asset that has no strings attached to it at all. 

Cash Equivalent

Financial Instruments that are readily convertible to cash within three months--Treasury notes, money market funds, commercial paper.  

Investments

Stocks, bonds, IOU's 

Contributions Receivables

Contributions owed the organization. 

A pledge that hasn't yet been fulfilled. 

Accounts Receivables

The receivables represent funds that are owed to the not-for profit organization from individuals or other organizations because of services provided or goods sold to these other entities.  The receivable should not be recorded until the organization actually "earns" the revenue.  Not all receivables are ultimately collected. 

Other Receivables

Not for profit organizations sometimes have other receivables reported on their statement of financial position representing money owed to them for reasons other than the two main categories previously described.   Examples:  Amounts owed under grants (for general support); Reimbursements of expenses; Reimbursement of expenses paid on behalf of other not-for-profit organizations. 

Inventories

Inventories are items that the organization expects to sell.  In other words, supplies that are expected to be used by the not-for-profit organization in its operations should not be reported as inventories.

Property, Plant, and Equipment

Prepaid Expenses

Pre-paid expenses are assets that arise because an organization has paid for services that it will receive in the future, with the future being defined as a time past the fiscal year-end.  EXAMPLE--On-line education software subscriptions bought in May with left over funds that will be used starting the following September.  

Accounts Payable

Accounts payable essentially represent the unpaid bills of a not-for-profit organization.  These are bills for goods or services that have been received by the organization prior to the end of its fiscal year.  

Debt

Liabilities owed by the non-profit to others.  "debt is known by several different names, usually based on how long the debt has before it becomes due , or matures.  Short-term loan (five years or less) Line of credit (like checking account overdraft privileges) "It is important to note that a liability is not recorded at the time that the not-for profit organization obtains the line of credit, but rather when it draws down on the credit line.  

Short-term Debt

Short-term loan (one year or less) 

Line of Credit

Line of credit (like checking account overdraft privileges) "It is important to note that a liability is not recorded at the time that the not-for profit organization obtains the line of credit, but rather when it draws down on the credit line.

Long-term Debt

Longer-term debt incurred by a not-for profit organization is usually associated with the construction of a facility or other major capital improvement. 

Deferred Income

When cash is received by a not-for-profit organization prior to its either having earned the income or the right to keep the income, it records the cash along with a liability-type account called deferred income.  (See Page 28.  Subscription sales to the Opera before the shows are produced.)

Assets

 The probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events

Liabilities

 Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

New Assests

 The difference between the assets and liabilities of

a non-for-profit organization.

Net Assets

 The difference between the assets and liabilities of a non-for-profit organization. 

Unrestricted Net Assets

Unrestricted net assets represent the net assets of a not-for-profit organization that are not temporarily restricted or permanently restricted.  

Temporarily Restricted Net Assets

Temporarily restricted net assets are those net assets whose use is limited by either a donor-imposed time restriction or a donor-imposed purpose restriction.  

Permanently Restricted Net Assets

Permanently restricted net assets represent those net assets that a donor has instructed the not-for-profit organization to maintain in perpetuity, that is permanently.  IE Endowment where only the interest can be used not the principal.  

Revenues

"inflows or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) from delivering or producing goods, receiving, services, or other activities that constitute the entity's ongoing major or central operation." 

Rental income

Unrestricted net assets represent the net assets of a not-for-profit organization that are not temporarily restricted or permanently restricted.  

Interest Income

Interest payments received from the bank on the organization's savings accounts, etc.

Service Revenue

Payment made to the organization by others  in exchange for the services provided by the organization, etc. 

Product Revenue

Payment made to the organization by others  in exchange for the goods provided by the organization, etc.

Expenses

The "outflows or other using up of assets or incurrence of liabilities (or the combination of both) from delivering or producing goods, rendering services, or carrying out other 

Personnel Expenses

Salaries and Benefits paid to employees

Facility

Payments the organization makes to others related to the space that the organization occupies

Transportation

Payments the organization makes to others related transportation activities such as vehicle purchases, auto insurance, auto maintenance and repairs, etc.

Program Expenses

Purchases made by the organization related to program operation including supplies, furniture, textbooks, computers, etc. 

Administrative Expense

Fees dealing with the administration of the organization including audit fees, banking fees, legal fees, etc.