Tom McLaughlin, Manager, Management Services, BDO Seidman, LLP , Boston, Massachusetts The Learning Institute for Nonprofit Organizations recognizes that there is no widely accepted glossary of terms for the nonprofit sector. In fact, the sector often uses multiple, and some times conflicting definitions for the same term. Your organization s assets are shown on the balance sheet. Current assets are defined as assets that could reasonably be expected to be converted to cash within a year.
Noncurrent assets are harder to turn into cash on short notice.
A structured examination of financial records by an independent CPA in accordance with accepted accounting procedures designed to ascertain the accuracy of the organization s financial condition. The balance sheet places all of the assets on one side and all of the liabilities and net assets on the other side. An individual licensed by one or more states to engage in the public practice of accounting and qualified to examine the financial affairs of an organization and issue opinions in accordance with established professional standards. The recording of asset values as the cost of acquiring them. This is an accounting method for spreading out the expense of a permanent asset over the expected life of the asset.