Which of the Following Is not True Regarding the Treatment

question 73

Multiple Choice

Which of the following is not true regarding the treatment of multiyear pledges, according to FASB Statement 116?

• A) They are recorded at the present value of future collections.
• B) They should be reported net of an allowance for estimated uncollectibles.
• C) They should be recorded as temporarily restricted.
• D) At the end of each accounting period, the difference between the new and previously recorded present value is recorded as interest revenue.

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Definitions:

Tax Bases

The total amount of assets or income that a government can tax in order to support its spending.

United States

A country in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and diverse population.

Tax Rate Structure

Tax Rate Structure refers to the system of taxing income, property, goods, or transactions at different rates, based on the amount, value, or type.

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation for calculating taxes to be levied.