The governing board of Samaritan Hospital,which is operated by a religious organization,designated $500,000 of cash for future expansion of the hospital.On the hospital's balance sheet,the cash designated for future plant expansion would be disclosed in which of the following classes of net assets?
A)Net assets with donor restrictions
B)Net assets without donor restrictions
C)Plant replacement and expansion
D)Board designated net assets

Question

Quizplus · Accepted Answer

The cash designated for future plant expansion by the governing board of Samaritan Hospital, which is operated by a religious organization, would be disclosed in the class of net assets without donor restrictions. This is because the designation was made internally by the organization's governing board, rather than being restricted by an external donor.

The Governing Board of Samaritan Hospital,which Is Operated by a Religious