Which of the Following Is not True Regarding the Treatment

question 73

Multiple Choice

Which of the following is not true regarding the treatment of multiyear pledges, according to FASB Statement 116?

• A) They are recorded at the present value of future collections.
• B) They should be reported net of an allowance for estimated uncollectibles.
• C) They should be recorded as temporarily restricted.
• D) At the end of each accounting period, the difference between the new and previously recorded present value is recorded as interest revenue.

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Definitions:

Fundraising Efforts

Activities or strategies implemented to gather financial support for a particular cause or project.

Common Resource

A type of good that is accessible to all members of society but has limited availability, leading to potential overuse or depletion.

Admittance Fee

A charge for entering a place or participating in an event, often used in contexts like museums, parks, or exhibitions.

Private Good

A product or service that is consumed by a single person or household, excluding others from using it.