Which of the Following Is Not True About Multi-Year Pledges

question 16

Multiple Choice

Which of the following is not true about multi-year pledges or pledges payable in the future?

• A)​The pledges are recorded as unrestricted if the donor has not stipulated any restrictions.
• B)​The pledges are recorded at their present value.
• C)​The pledges are treated as temporarily restricted revenue.
• D)​An allowance for doubtful contributions should be established based on historical expenses.

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Definitions:

Total Liabilities And Equity

The sum of all financial obligations and ownership equity of a company, representing the total sources of funds used to finance its assets.

SEC Reporting Regulations

The rules and guidelines set forth by the Securities and Exchange Commission for publicly traded companies to ensure transparency, accuracy, and fairness in financial reporting.

Accounting Procedures

Standard methods and practices used for recording, classifying, and summarizing financial transactions within an organization.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the United States.