A McAllen, TX CPA offers standard accounting advice regarding asset allocation on a balance sheet:
The common characteristics possessed by all assets is service potential - this is true of any CPA firm you talk to in McAllen. In a business enterprise, that service potential or future economic benefit eventually results in net cash inflows to the enterprise. In a non-profit organization, that service potential or future economic benefit is used to provide desired or needed goods or services to beneficiaries or other constituents, which may or may not directly result in net cash inflows to the organization.
Some non-profits rely significantly on contributions or donations of cash to supplement selling prices or to replace cash or other assets used in providing goods or services. The relationship between service potential or future economic benefit of its assets and net cash inflows to an entity is often indirect in both business enterprises and non-profit organizations.
