Question

In a private not for profit, what would the entry to record the expiration of program restrictions include from the following?:

A. Credit Performance Expense
B. Credit Reclassification from Temporarily Restricted Net Assets
C. Debit Reclassification to Unrestricted Net Assets
D. Debit Reclassification from Temporarily Restricted Net Assets

Answer 1

Answer: The correct answer is : D. Debit Reclassification from Temporarily Restricted Net Assets

Explanation: Private nonprofit organizations must follow all FASB standards that apply when registering transactions. The financial statements requested for all non-profit non-governmental organizations are, financial statements, statement of activities and cash flow statements.