Endowment income expended by a not-for-profit health care organization for purposes specified by the donor should be recorded as a decrease in temporarily restricted net assets using the account Net Assets Released from Restrictions.

Question

Quizplus · Accepted Answer

A private hospital would show a decrease in temporarily restricted net assets (net assets released from restrictions) and an increase in unrestricted net assets for the amount of the expense with the related expense as a decrease in unrestricted net assets.

Endowment Income Expended by a Not-For-Profit Health Care Organization for Purposes