In: Accounting
How much of temporarily restricted funds did the college expend during the year? Is this the money released from Temporarily restricted assets to unrestricted?
As we know all the expenditure cannot be planned through out the year.
So there are many expense that will be incurred in our financial year.
There are some assets which can be set aside for some specified expenses. That assets are termed as restricted assets.
But in some exceptional cases these restricted assets can be used to emergency expenses in most wanted situation.
So these can be used for other purposes also.
Yes these money will he come from restricted assets .
That restricted assets can be released to as unrestricted assets and use those assets in the emergency purposes.
So not only in the case of colleges but also in any bussiness this situation may arise . In those type of situation at the last option restricted assets can be treat as unrestricted assets and those amount will be use for any purpose.
These are the points about the above given question.
I hope, all the above mentioned points are helpful to you.
Thank you.