Note: This is a Kaplan CPA Review Question
Which of the following transactions of a private voluntary health and welfare organization would increase temporarily restricted net assets in the statement of activities for the current year?
I. Received a contribution of $20,000 from a donor in the current year who stipulated that the money not be spent until the following year.
II. Spent $25,000 for fund raising during the current year from a donation from the previous year.
A) I only
B) Both I and II
C) II only
D) Neither I nor II

Question

Quizplus · Accepted Answer

A contribution with a stipulation that it not be spent until the following year increases temporarily restricted net assets, as it is restricted by time.

Note: This Is a Kaplan CPA Review Question