Reclassifications from Permanently Restricted Net Assets to Temporarily Restricted Net

question 30

Multiple Choice

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

• A) Time restrictions placed on the permanently restricted net assets have been met.
• B) Purpose restrictions placed on the permanently restricted net assets have been met.
• C) Either of the above criteria (A and B) have been met.
• D) Permanently restricted net assets would not be reclassified to temporarily restricted net assets.