_____ Under FAS 117, How Would the Expiration of a Prior-Year

Multiple Choice

_____ Under FAS 117, how would the expiration of a prior-year donor restriction as to purpose be reflected in the current-year statement of activities?

A) Recognition of an expense.
B) Recognition of a revenue.
C) Recognition of both an expense and an offsetting revenue amount.
D) A separate line item reclassification between the temporarily restricted category and the unrestricted category.
E) None of the above.