How Is the Receipt of an Unconditional Pledge to Contribute

question 126

Multiple Choice

How is the receipt of an unconditional pledge to contribute to a private not-for-profit organization recorded?

• A) As revenue when pledged.
• B) Not recorded until received.
• C) As unearned revenue when pledged.
• D) None of the above.

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Definitions:

Profit-Maximizing

The strategy or procedure for altering sales and production to attain the greatest possible earnings.

Market Price

The amount of money for which a good or service is offered, sold, or bought in the market.

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, and free entry and exit, leading to price takers.

Marginal Revenue

The additional income received for selling one more unit of a good or service.