Expenses should be classified as unrestricted or temporarily restricted, consistent with the classification of the resources used to finance them.

Question

Quizplus · Accepted Answer

Expenses are not classified as unrestricted or temporarily restricted; rather, they are recorded based on the nature of the expense itself. The classification of unrestricted or temporarily restricted applies to revenues or funds received by an organization, indicating how those funds can be used.

Expenses Should Be Classified as Unrestricted or Temporarily Restricted, Consistent