Under FASB Standards How Would a Not-For-Profit Organization Recognize a Conditional

question 11

Multiple Choice

Under FASB standards how would a not-for-profit organization recognize a conditional pledge?

• A) It would debit Pledges Receivable and credit Contributions-Temporarily Restricted.
• B) It would debit Pledges Receivable and credit Deferred Contributions.
• C) It would debit Conditional Pledges Receivable and Credit Deferred Contributions.
• D) It would not recognize the conditional pledge until pledge conditions are substantially met.

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Definitions:

Tort Of Nuisance

A legal wrong arising from the use of one's property in a manner that causes annoyance, inconvenience, or damage to others.

Special Damages

Monetary compensation awarded by a court to cover actual expenses and calculable pre-trial losses.

Punish Wrongdoers

The act of imposing a penalty on individuals or entities found to have violated laws or rules.

Contractual Promises

A commitment or guarantee included within a contract that one or both parties agree to carry out.