According to the FASB,temporarily Restricted Net Assets Are Released from Restrictions

question 47

Multiple Choice

According to the FASB,temporarily restricted net assets are released from restrictions:

• A) At the end of each fiscal year.
• B) As assets are spent for the purposes intended by the donor.
• C) When funds are returned to the donor.
• D) When they are converted to permanently restricted net assets.

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Definitions:

Presentation Currency

The form of money utilized in the presentation of a corporation's financial reports.

Shareholders Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the amount that would be returned to shareholders if all assets were liquidated and all debts repaid.

Closing Rate

The exchange rate used to convert foreign currency-denominated financial statements of a subsidiary into the reporting currency of the parent company at the balance sheet date.

Foreign Subsidiary

A company that is completely or partially owned and controlled by another company, but operates in a different country than the parent company.