A Local Philanthropist Pledged to Make a Donation of $100,000

question 24

Multiple Choice

A local philanthropist pledged to make a donation of $100,000 to an NPO to be paid in five equal installments of $20,000 beginning in the next fiscal year.Under FASB standards the pledge would be recognized as

• A)Support of $20,000 in each of the following five years.
• B)Support of $20,000 in the year the pledge was made and $80,000 as deferred support.
• C)Deferred support of $100,000 in the year the pledge was made.
• D)Support of $100,000 in the year the pledge was made,discounted at an appropriate rate for future receipts.

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Definitions:

Segment Data

Information regarding the different operating segments of a company as required by accounting standards to help investors better understand the company's performance.

Fiscal Years

A one-year period that companies and governments use for financial reporting and budgeting, which may not necessarily align with the calendar year.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a company.

Office Supplies

These are consumable items used in an office environment for daily operations, including items like pens, paper, and staplers.