A local philanthropist pledged to make an unrestricted donation of $200,000 to an NPO to be paid in five equal installme
Posted: Sat May 07, 2022 8:24 pm
A local philanthropist pledged to make an unrestricted donation
of $200,000 to an NPO to be paid in five equal installments of
$40,000 beginning in the next fiscal year. Assume that all pledged
amounts will be received. Under FASB standards the pledge would be
recognized as:
A) an increase of $40,000, in unrestricted net assets, in each
of the following five years.
B) an increase in temporarily restricted net assets of $40,000,
in each of the following five years.
C) an increase in unrestricted net assets of $200,000 in the
year the pledge was made.
D) More than one of the above.
of $200,000 to an NPO to be paid in five equal installments of
$40,000 beginning in the next fiscal year. Assume that all pledged
amounts will be received. Under FASB standards the pledge would be
recognized as:
A) an increase of $40,000, in unrestricted net assets, in each
of the following five years.
B) an increase in temporarily restricted net assets of $40,000,
in each of the following five years.
C) an increase in unrestricted net assets of $200,000 in the
year the pledge was made.
D) More than one of the above.