Net Assets Restricted as to Time or Purpose Should Be

question 56

Multiple Choice

Net assets restricted as to time or purpose should be classified as:
I.temporarily restricted.
II.permanently restricted.

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

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Definitions:

Leap Years

Years that are divisible by 4 (except for years divisible by 100, unless they are also divisible by 400), having 366 days to keep the calendar year synchronized with the astronomical year.

Maturity Value

The total amount that will be received at the maturity date of an investment, including the principal and any accrued interest.

365-Day Year

A method used in finance calculations that assumes all years have 365 days for the purpose of simplifying interest calculations.

Maturity Value

The amount to be paid out or the final value of an investment upon its maturity, including the principal and the interest earned.