Under FASB Statement 117,reclassifications of Net Assets Are Not Made

question 110

Multiple Choice

Under FASB Statement 117,reclassifications of net assets are not made:

• A) For satisfaction of time restrictions.
• B) For satisfaction of program restrictions.
• C) If the governing board decides to permanently place assets in an endowment.
• D) None of the above.

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Definitions:

Deposit Account

A bank account that holds deposited funds, such as a savings or checking account, allowing for the deposit and withdrawal of money.

Perfection

In law, especially regarding secured transactions, refers to the act of making a security interest enforceable against third parties by fulfilling legal requirements.

Financing Statement

A document filed by a creditor to announce a security interest in a debtor's assets, used in securing loans.

Security Agreement

A legal contract that grants a lender a security interest in a specific asset or property pledged as collateral by the borrower.