An Unconditional Pledge of Support Is Properly Recorded as Temporarily

question 122

Multiple Choice

An unconditional pledge of support is properly recorded as Temporarily Restricted Revenue at the time of the pledge. Changes in the present value of the receivable resulting from the passage of time is reported as:

• A) Interest income.
• B) Contribution revenue.
• C) Program revenue.
• D) None of above is correct.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or volume of business, such as materials and labor costs.

Fixed Costs

Rephrased: Expenses that remain constant regardless of the company's level of production or business activity.

Trucking Department

A specialized division within a company responsible for the management and operation of trucking logistics, including transportation and delivery services.

Peak-Period Requirements

The increased demand or resources needed during the busiest or most active times for a business or service.