Nongovernment Not-For-Profit Organizations Recognize Revenues When

question 6

Multiple Choice

Nongovernment not-for-profit organizations recognize revenues when

• A) Pledges are measurable and available.
• B) Unconditional pledges become due.
• C) Unconditional pledges are made by donors, even if not yet collected.
• D) Unconditional pledges are made by donors and qualifying costs have been incurred.

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Definitions:

Western Europe

A region comprising countries located in the western part of the European continent, often associated with developed economies and democratic governance.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

APC

Average Propensity to Consume, which measures the fraction of income that households spend on consumption rather than saving.

MPS

Stands for Marginal Propensity to Save, which is the ratio of the change in savings to the change in disposable income. It indicates how much of an additional income unit is saved rather than spent.