Asked by jesus salazar on Jun 25, 2024
Verified
Which of the following statements is NOT correct?
A) A contribution receivable should be recognized as an asset when the amount can be reasonably estimated and the ultimate collection is reasonably assured.
B) A contribution receivable should be recognized as an asset when the amount can be reasonably estimated or the ultimate collection is reasonably assured.
C) Contribution revenue is a type of revenue where the contributor receives nothing directly in return for his or her contribution.
D) Government grants typically qualify as a contribution.
Contribution Receivable
An amount pledged to be paid to a company or organization as a donation or investment, but which has not yet been received.
Ultimate Collection
A term typically referring to the most complete or finest selection of items in a particular category or series.
Government Grants
Financial assistance given by the government to individuals, organizations, or companies in support of activities that are considered beneficial to the public interest.
- Establish and exert the proper accounting standards for donations, identifying restricted, unrestricted, and endowment contributions.
- Comprehend the requirements for documenting bequests and donations and their effects on financial reports.
Verified Answer
Learning Objectives
- Establish and exert the proper accounting standards for donations, identifying restricted, unrestricted, and endowment contributions.
- Comprehend the requirements for documenting bequests and donations and their effects on financial reports.
Related questions
If a Not-For-Profit Organization Uses the Restricted Fund Method of ...
A Not-For-Profit Organization Receives a Restricted Contribution of $20,000 to ...
NFPOs Receive Different Types of Contributions ...
Which of the Following Statements Is Correct ...
Contributions Received by NFPs May Be Restricted ...