When a Not-For-Profit Organization Uses the Deferred Contribution Method of Revenue

question 52

Multiple Choice

When a not-for-profit organization uses the deferred contribution method of revenue recognition and receives a donation restricted to the purchase of land, when should the donation be recognized as revenue?

• A) When the cash is received.
• B) When the land is purchased.
• C) When the land is put into service by the organization.
• D)It should not be recognized as revenue at all.

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Definitions:

Psychoanalysis

A therapeutic approach developed by Freud, focusing on exploring unconscious motivations and conflicts.

Therapeutic Technique

A specific method or procedure used in therapy to help individuals overcome their psychological problems.

Eclectic

Employing elements from a diverse range of sources, styles, or ideas.

Operant Conditioning

Operant conditioning is a learning process in which the likelihood of a behavior is modified by its consequences, involving reinforcements or punishments.