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:

Diamond

A precious gemstone formed from carbon under high pressure and temperature, valued for its brilliance, clarity, and rarity.

Water

Water is a transparent, tasteless, odorless, and nearly colorless chemical substance that is essential for the survival of most known forms of life.

Marginal Cost

The expense associated with manufacturing an additional unit of a product or service.

Price Reduction

A decrease in the cost of goods or services, often used as a strategy to increase demand or sales.