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.

---

Definitions:

Liabilities

Financial obligations or debts that an individual or organization is responsible for.

Act of Commission

An action taken by a person or group intentionally that causes something to occur.

Crimes

Acts or omissions that violate laws which are enforceable by the government and are punishable by fines, imprisonment, or other sanctions.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.