During the Year a Donor Pledged $1,000,000 in Funds to a Not-For-Profit

question 26

Multiple Choice

During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB,how would this pledge be recorded?

• A) Contribution-Unrestricted.
• B) Contribution-Temporarily Restricted.
• C) Contribution-Permanently Restricted.
• D) It would not be recorded.

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Definitions:

Heuristic

A problem-solving strategy or mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Language-like Skills

The abilities related to the use and understanding of complex systems of communication that resemble human language, including syntax, grammar, and the conveyance of abstract concepts.

Grammatical Rules

Guidelines in a language that dictate how words and phrases should be structured to convey clear and correct meaning.

Functional Fixedness

A mental shortcut that restricts an individual to employing an item solely in its conventional manner, obstructing innovative thinking and the ability to solve problems.