Revenue from an exchange transaction may be classified as an increase in which class of net assets?

Question

Quizplus · Accepted Answer

Revenue from an exchange transaction typically results in an increase in unrestricted net assets, as there are no restrictions or donor-imposed conditions on the use of the funds. Therefore, option A is the correct answer. Options B and C involve restricted net assets, which are subject to specific limitations or conditions on their use. Option D is incorrect because not all types of net assets would be affected equally by revenue from an exchange transaction.

Revenue from an Exchange Transaction May Be Classified as an Increase