Which of the Following Is Part of the Treatment of Multi-Year

question 8

Multiple Choice

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No. 116?

• A) The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received.
• B) At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income
• C) At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased.
• D) Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization.

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Definitions:

Trieb

A German term used by Freud, often translated as "drive" or "instinct", referring to the internal forces that motivate behavior.

Motivating Forces

The internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Sex Act

Physical activities involving sexual intercourse or other forms of sexual expression between individuals.

Paradoxical

Characterized by seemingly contradictory qualities that may nevertheless be true when observed from different perspectives.