When Are Unconditional Promises to Give Recognized as Revenues

question 62

Multiple Choice

When are unconditional promises to give recognized as revenues?

• A) In the period the promise is received.
• B) In the period the promise is collected.
• C) In the period in which the conditions on which they depend are substantially met.
• D) In the period in which the conditions on which they depend have begun to be met.
• E) Unconditional promises from potential donors are not revenues.

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Definitions:

Ponzi Scheme

A fraudulent investment operation where returns to earlier investors are paid from the capital contributed by new investors, rather than from profit earned.

White-Collar Crime

Non-violent crimes committed by individuals, typically during the course of their occupation, involving deception for financial gain.

Fraudulent Investments

Investments schemes or opportunities that are deceptive, promising high returns with little to no risk, but are actually designed to defraud investors.

Racial-Ethnic Background

The ethnic and racial heritage of an individual, encompassing the cultural, social, and historical influences of their ancestors.