A Donor Made a Pledge in 2013 of $ 50,000

question 101

Multiple Choice

A donor made a pledge in 2013 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2014 for unrestricted use in 2014.The organization should:

• A) Record the pledge receivable and deferred revenue in 2013.
• B) Record the pledge as unrestricted revenue in 2013.
• C) Record the pledge as temporarily restricted revenue in 2013 and reclassify it to unrestricted in 2014.
• D) Record the pledge as temporarily restricted revenue in 2013 and reclassify it to unrestricted in 2014, but only in an amount equivalent to the amount that is spent in 2014.