In 2010 St.Joe's Hospital received a $50,000 cash gift to be used to buy supplies and other items for the pediatric department of the hospital.In 2011, St.Joe's purchased puppets and other items to be used in explaining medical procedures to young children.The acquisition of the items causes a NET decrease in which classes of net assets?

Question

Quizplus · Accepted Answer

The cash gift was temporarily restricted for use in the pediatric department. When the hospital used the funds to purchase items, it fulfilled the restriction, causing a decrease in temporarily restricted net assets.