Which of the Following Is Part of the Treatment of Multi-Year

question 8

Multiple Choice

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No. 116?

• A) The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received.
• B) At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income
• C) At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased.
• D) Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization.

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Definitions:

Mylohyoid

A muscle that forms the floor of the mouth, elevates the tongue, and depresses the jaw.

Masseter

A facial muscle that plays a crucial role in chewing by elevating the mandible (lower jaw).

Fibularis Longus

A muscle of the lower leg that helps in plantarflexion and eversion of the foot.

Gastrocnemius

A major calf muscle that is involved in walking, running, and jumping, attaching to the heel through the Achilles tendon.