In Accordance with ASC 958,pledges,which Are Temporarily Restricted by Donors,are

question 66

Multiple Choice

In accordance with ASC 958,pledges,which are temporarily restricted by donors,are reported as increases in temporarily restricted net assets on the statement of activities of a voluntary health and welfare organization when the

• A) pledges are received in cash.
• B) cash received from the pledges is expended in accordance with the donors' wishes.
• C) pledges are made by the donors.
• D) cash is received from the pledges is transferred to unrestricted net assets.

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Definitions:

Right To Payment

A legal entitlement to receive a certain amount of money, often as compensation for goods provided, services rendered, or as restitution for harm or damage.

Incidental Beneficiary

A third party that benefits from a contract between two other parties, despite not being an intended beneficiary.

Contract

A legally binding agreement between two or more parties that outlines mutual obligations.

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.