On the statement of activities for a private,not-for-profit literary society,expenses decrease which of the following classes of net assets?
I.net assets with donor restrictions
II.net assets without donor restrictions
A)I only
B)II only
C)Either I or II
D)Neither I nor II

Question

Quizplus · Accepted Answer

Expenses would decrease net assets without donor restrictions, as these funds are available for the organization to use for any purpose. Net assets with donor restrictions are designated by donors for specific purposes and should not be used for other expenses.

On the Statement of Activities for a Private,not-For-Profit Literary Society,expenses