When Should a Not-For-Profit Entity Recognize Pledge Revenue That Is

question 8

Multiple Choice

When should a not-for-profit entity recognize pledge revenue that is contingent upon raising a matching amount?

• A) When the pledge is made.
• B) When the cash is received.
• C) When the matching funds have been raised.
• D) When the project is completed.

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Definitions:

Job-Order Costing System

A cost accounting system that assigns manufacturing costs to each product, allowing detailed tracking of expenditures.

Direct Labor-Hours

The total hours of labor work directly on manufacturing a product or providing a service, often used in costing and pricing decisions.

Milling Department

A section within a manufacturing facility where the process of grinding, cutting, pressing, or crushing materials occurs.

Overhead Applied

The portion of manufacturing overhead costs allocated to each unit of production based on a predetermined rate or method.