_____ Under FAS 117, How Would the Spending of Money Set

Multiple Choice

_____ Under FAS 117, how would the spending of money set aside in the prior year by the board of directors of a nonprofit organization to be used for a community service education project be reported 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.