_____ Under FAS 117, how would the spending of money set aside in the prior year by the board of directors of a nonprofit organization to be used for a community service education project be reported in the current-year statement of activities?
A) Recognition of an expense.
B) Recognition of a revenue.
C) Recognition of both an expense and an offsetting revenue amount.
D) A separate line item reclassification between the temporarily restricted category and the unrestricted category.
E) None of the above.

Question

_____	Under FAS 117, how would the spending of money set aside in the prior year by the board of directors of a nonprofit organization to be used for a community service education project be reported in the current-year statement of activities?
A) Recognition of an expense.
B) Recognition of a revenue.
C) Recognition of both an expense and an offsetting revenue amount.
D) A separate line item reclassification between the temporarily restricted category and the unrestricted category.
E) None of the above.

Quizplus · Accepted Answer

The spending of money set aside by the board for a specific purpose would be recognized as an expense in the current-year statement of activities when the funds are actually spent on the project.

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