According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,if both unrestricted and restricted resources are available for a restricted purpose,the FASB requires that the institution recognize the use of restricted resources first.

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According to FASB rules for accounting for colleges and universities, if both unrestricted and restricted resources are available for a restricted purpose, the institution must recognize the use of restricted resources first. This is because restricted resources have specific donor-imposed stipulations on their use, and the institution must abide by those restrictions before using unrestricted resources.

According to the Rules for Accounting for Colleges and Universities