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:

Fraction

A mathematical expression representing a part of a whole or a part of a group by using two numbers, the numerator over the denominator.

Equivalent Fractions

Fractions that represent the same part of a whole, even though they have different numerators and denominators.

Mixed Number

A number consisting of an integer and a proper fraction.

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator, representing a value greater than or equal to one.