Question

For a not-for-profit private animal rescue agency, which account should be credited to record a gift of cash from an outside party to be used for expenses to care for the animals?

Answer 1

Answer:

Unrestricted net assets - contributions

Explanation:

Unrestricted net assets are donations made to any nonprofit organization (in this case the animal rescue agency) that can be used for unrestricted general expenses. The rescue agency can use this money for their normal day to day expenses or for whatever other expense that they consider necessary without any type of restriction.

While restricted net assets are donations that must be used for an specific purpose set by the donor.