A private not-for-profit entity receives three large cash donations:One gift of $70,000 is unrestricted.One gift of $90,000 is restricted to pay the salary of the organization’s workers.One gift of $120,000 is restricted forever with the income to be used to provide food for needy families.Which of the following statements is not true? Choose the correct.a. Temporarily restricted net assets have increased by $90,000.b. Permanently restricted net assets have increased by $210,000.c. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount.d. When the donated money is spent for salaries, temporarily restricted net assets will decrease.
A private not-for-profit entity receives three large cash donations:
One gift of $70,000 is unrestricted.
One gift of $90,000 is restricted to pay the salary of the organization’s workers.
One gift of $120,000 is restricted forever with the income to be used to provide food for needy families.
Which of the following statements is not true? Choose the correct.
a. Temporarily restricted net assets have increased by $90,000.
b. Permanently restricted net assets have increased by $210,000.
c. When the donated money is spent for salaries, unrestricted net assets will increase and decrease by the same amount.
d. When the donated money is spent for salaries, temporarily restricted net assets will decrease.
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