_____ Under FAS 117, how would the spending of money donated in the prior year for spending in the current year be reported in the statement of activities?
A) As an expense in the temporarily restricted category.
B) As an expense in the unrestricted category.
C) As an expense in either the temporarily restricted category or the unrestricted category at the option of the nonprofit organization.
D) As a direct charge to equity.
E) None of the above.

Question

_____	Under FAS 117, how would the spending of money donated in the prior year for spending in the current year be reported in the statement of activities?
A) As an expense in the temporarily restricted category.
B) As an expense in the unrestricted category.
C) As an expense in either the temporarily restricted category or the unrestricted category at the option of the nonprofit organization.
D) As a direct charge to equity.
E) None of the above.

Quizplus · Accepted Answer

Under FAS 117, when money donated in the prior year for spending in the current year is spent, it is reported as an expense in the unrestricted category. This is because the funds have been released from their restriction by being spent for their intended purpose.

_____ Under FAS 117, How Would the Spending of Money Donated