Question

For Guiding Light, a nongovernmental nonprofit religious organization, net assets that can be expended in accordance with the wishes of the governing board of the organization should be reported asI. Unrestricted.II. Temporarily restricted.III. Permanently restricted.A. I only.B. Both I and II.C. I, II, and III.D. Either I or II.

Answer 1

A – Unrestricted

Step-by-step explanation:

• Unrestricted net assets are donations to nonprofit organizations that may be used by the organization for general expenses or any legitimate expenditure.

• Temporarily restricted net assets usually are donated for a particular purpose and must be used by a period.

• Permanently restricted net assets are often fund that must be maintained indefinitely, with the income generated by its investment to be used for a particular purpose.