Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 16

A private not-for-profit organization receives three 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
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.