Which of the Following Statements Is not Correct with Respect

question 93

Multiple Choice

Which of the following statements is not correct with respect to conditional and unconditional pledges

• A) FASB requires contributions, including unconditional pledges to be recorded as revenues when the promise is made.
• B) Conditional pledges to give are not recognized as revenues until the conditions are satisfied.
• C) If a conditional pledge is made and the money is received by the not-for-profit, but if the condition is not met, the potential donor is not bound by the promise and may require the money be returned.
• D) Conditional pledges are recorded as unearned revenue.

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Definitions:

Uncertainty

Describes a situation where the outcomes or consequences of actions are unknown and unpredictable.

Probability

Likelihood that a given outcome will occur.

Rules of Thumb

Simple, general principles or guidelines that are typically derived from practice rather than theory.

Efficiency Wage Theory

Suggests employers pay a higher wage than the market equilibrium to increase worker productivity and loyalty.