FASB Statement 116 Requires Contributions to Be Recorded as Revenue

question 87

Multiple Choice

FASB statement 116 requires contributions to be recorded as revenue when

• A) The contribution is promised.
• B) The contributed asset is actually received.
• C) The contribution is likely to be received.
• D) The contribution is probable and measurable.

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Definitions:

Confidence Interval

A set of values, taken from data samples, which is predicted to include the value of an unspecified population attribute.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability within a data set, indicating how much individual data points deviate from the mean.

Normal Distribution

A bell-shaped frequency distribution curve that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Exponential Distribution

The exponential distribution is a continuous probability distribution used to model the time or space between events in a Poisson process.