The transactions described in the following questions occurred in a voluntary health and welfare organization during the year ended December 31,20X8.For each transaction,indicate its effect(s) on the organization's statement of activities prepared for the year ended December 31,20X8.List all effects of transactions affecting more than one class of net assets.Indicate your choice(s) by entering the letter corresponding to the effects listed here:
Effects of Transactions on Statement of Activities
-Endowment income was earned.The donor specified that the income be used for community service.
A) Increases net assets with donor restrictions.
B) Decreases net assets with donor restrictions.
C) Increases net assets without donor restrictions.
D) Decreases net assets without donor restrictions.
E) Transaction is not reported on the statement of activities.
Correct Answer:
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