Question: E 22-2 Multiple choice 1. When a temporary restriction on resources of a nongovernmental not-for-profit entity is met by the incurrence of an expense for

E 22-2 Multiple choice 1. When a temporary restriction on resources of a nongovernmental not-for-profit entity is met by the incurrence of an expense for the restricted purpose:

a The expense is reported in the statement of activities as an increase in unrestricted net assets.

b Amounts reported in the temporarily restricted net assets are reclassified as unrestricted net assets.

c The entry is a debit to expense and a credit to the program services.

d The expense is reported in restricted net assets.

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