Reclassifying Net Assets from Temporarily Restricted to Unrestricted

question 47

Multiple Choice

Reclassifying net assets from temporarily restricted to unrestricted:

• A)​is done when the unrestricted net assets fall below a predetermined threshold.
• B)​matches the net assets to the expenses they support.
• C)​does not require a formal journal entry.
• D)​may be done at the organization's discretion when an expense is incurred for a purpose for which both restricted and unrestricted net assets are available.

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Definitions:

Megaphylls

Leaves with a highly branched vascular system, characteristic of the majority of vascular plants, offering increased efficiency in photosynthesis.

Capsule

A protective layer, typically polysaccharide or protein, surrounding the cell walls of some bacteria and fungi.

Haploid Spores

Reproductive cells produced by some plants, fungi, and protists that have only one set of chromosomes and can develop into a new organism without needing to fuse with another cell.

Organic Material

Matter composed of organic compounds that has come from the remains of organisms such as plants and animals and their waste products in the environment.