Good Care Hospital,which is operated by a religious organization,received contributions of $1,000,000 from donors who stipulated that the cash be used to construct an addition to the hospital.As of the balance sheet date,none of the contributions had been expended for construction.On the hospital's balance sheet,the cash contributions would be disclosed in which of the following classes of net assets?

Question

Quizplus · Accepted Answer

The correct answer is A) Net assets with donor restrictions because the donors specified that the contributions must be used for a specific purpose (construction of an addition to the hospital), which restricts how the hospital can use these funds.

Good Care Hospital,which Is Operated by a Religious Organization,received Contributions