Net assets restricted as to time or purpose should be classified as:
I.temporarily restricted.
II.permanently restricted.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Net assets restricted as to time or purpose should be classified as temporarily restricted until the time or purpose restriction is met. These restrictions may be either donor-imposed or legally imposed by external factors, such as government regulations. Permanently restricted net assets are those that are restricted by the donor to remain intact and invested, with only the income from the assets available for use by the organization.

Net Assets Restricted as to Time or Purpose Should Be