A not-for-profit organization received a donation temporarily restricted as to use.The donated amount was later spent in accordance with the restriction.In which category(ies)of net assets should the related revenues and expenses be recognized?

Question

Quizplus · Accepted Answer

The revenues should be recognized as "net assets with donor restrictions" when received, and once the funds are spent according to the restriction, they are reclassified to "net assets without donor restrictions" as expenses.

A Not-For-Profit Organization Received a Donation Temporarily Restricted as to Use.The