When a Not-For-Profit Organization Uses the Deferral Method of Revenue

question 41

Multiple Choice

When a not-for-profit organization uses the deferral method of revenue recognition and receives a donation restricted to the purchase of land, when should the donation be recognized as revenue?

• A) When the cash is received.
• B) When the land is purchased.
• C) When the land is put into service by the organization.
• D) It should not be recognized as revenue at all.

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