temporarily restricted net assets? A) Permanently restricted net assets contain restrictions that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization Temporarily restricted net assets provide for expiration, but not fulfillment of those restrictions. Permanently restricted net assets contain restrictions that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization. Temporarily restricted net assets provide for fulfillment of those restrictions, but not their expiration. Permanently restricted net assets contain restrictions that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization while temporarily restricted net assets provide for such expiration or fulfillment. The difference between permanently and temporarily restricted net assets lies in the time period over which those restrictions expire or are fulfilled. B) C) D) 45. Which of the following best describes the accounting for temporarily restricted net assets? A) Once the temporarily restricted asset is used for the defined purpose, the NFP transfers cash from a temporarily restricted account to an unrestricted account. B) Once the temporarily restricted asset is used for the defined purpose, the NFP C) Once the temporarily restricted asset is used for the defined purpose, the NFP D) Once the temporarily restricted asset is used for the defined purpose, the NFP transf unrestricted account. fers the related expense from a temporarily restricted account to an transfers the amount spent from permanently restricted net assets to unrestricted net assts. transfers the amount spent from temporarily restricted net assets to unrestricted net assets 46. Which of the following best describes the accounting for restricted net assets? A) Investments are initially recorded at market value when received as donations, and any income earned on those investments is reported as unrestricted. B) Investments are initially recorded at market value when received as donations, and any income earned on those investments is reported as temporarily restricted C) Investments are initially recorded at market value when received as donations, and y income earned on those investments is reported as permanently restricted D) Investments are initially recorded at market value when received as donations, and any income earned on those investments is reported in the net asset category to ch the investment relates (i.e., permanently restricted, temporarily restricted, or