Assets whose use is limited by contracts or agreements with outside parties other than donors or grantors are labeled

Question

Quizplus · Accepted Answer

Assets limited as to use are those whose use is restricted by contracts or agreements with parties other than donors or grantors. These limitations can include restrictions on the purpose for which the assets can be used, the time period during which they can be used, or the manner in which they can be used. These limitations are not imposed by the donor or grantor and therefore are not classified as temporarily restricted net assets. Designated net assets are assets that have been earmarked by an organization for a specific purpose, but their use is not restricted by an outside party. Restricted assets are a broader category that includes both temporarily restricted and permanently restricted net assets.

Assets Whose Use Is Limited by Contracts or Agreements with Outside