The FASB Generally Requires That Not-For-Profit Organizations Record Unconditional Pledges

question 76

True/False

The FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions) only when received in cash.

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Definitions:

Transferable Check

A type of check that allows the original payee to endorse it to another party, transferring the right to cash or deposit.

Clearinghouse

An intermediary body that facilitates the exchange of payments, securities, or derivatives transactions among its members.

Payor Bank

A bank that is responsible for paying a check or draft on behalf of a customer, typically the bank where the check writer has an account.

Depository Bank

A financial institution that holds and manages securities (stocks, bonds, etc.) for its clients and may also offer other banking services.