_____ Under FAS 117, income earned from temporary endowments that can be spent on only certain programs but that has not yet been spent would be reported in the statement of activities in the
A) Permanently restricted category.
B) Temporarily restricted category.
C) Unrestricted category.
D) Temporarily restricted category or unrestricted category.
E) None of the above.

Question

_____	Under FAS 117, income earned from temporary endowments that can be spent on only certain programs but that has not yet been spent would be reported in the statement of activities in the
A) Permanently restricted category.
B) Temporarily restricted category.
C) Unrestricted category.
D) Temporarily restricted category or unrestricted category.
E) None of the above.

Quizplus · Accepted Answer

Under FAS 117 (now updated to FASB ASC 958), income earned from temporary endowments that has not yet been spent but is intended for certain programs is reported in the temporarily restricted category. This is because the funds are restricted by the donor for a specific purpose and remain so until they are used for that purpose.

_____ Under FAS 117, Income Earned from Temporary Endowments That Can