1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
N76 [4]
3 years ago
15

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal

installments of $20,000 beginning in two years. Under FASB standards the pledge would be recognized as:
a. A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value.
b. Deferred support of $100,000 in the year the pledge was made.
c. A contribution of $20,000 in each of the five years a contribution is made.
d. A contribution of $100,000 in the year the pledge is made, adjusted for the estimated uncollectible amount.
Business
1 answer:
sweet [91]3 years ago
8 0

Answer:

The correct answer is C)

Explanation:

A pledge in this context is a vow or a promise to make a donation or give something at a future date. It may be vocalized or communicated in writing.  

The Financial Accounting Standards Board (FASB), sets out the criteria for recognizing a pledge or a promise as follows:

  1. Relevance— If the promise is important enough to make a difference in the users  decisions,  then it ought to be recognized
  2. Definitions—If the item satisfies the definition of a component of a financial statement, then it ought to be recognized;
  3. Dependability— When the pledge is based on a fact that can be recorded, verifiable, and neutral, then it can be recognized
  4. Measurability— if it allows for measurability, then it should be recognized

It is clearly stated that where the certainty or reliability of a promise or a vow is difficult that measure, it is better to decline from recognizing such a pledge.

                 

Cheers!                      

You might be interested in
Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment f
alukav5142 [94]

Answer:

A. Undue influence

Explanation:

Undue influence in law of contract is when a person uses his or her position of power to take advantage over another person. It is an act of influencing the other party in a contractual relationship. There must be a relationship between both parties before undue influence can take place.

In law of contract, if a person is a victim of undue influence, the person has the right to rescind the contract provided same can be proven in a court of law.

Example of undue influence is when a person is not given parts of properties due to him or her in a family's will, whereas he or she is entitled to it.

6 0
3 years ago
delmont movers has a profit margin of 6.2 percent and net income of $48900. what is the common size percentage for the cost of g
ValentinkaMS [17]

Answer:

The common size percentage for the cost of goods sold is 48.05%

Explanation:

The profit margin reflects a company's overall ability to turn income into profit, is calculated by formula:

Profit margin = Net income/Net sales

Delmont movers has a profit margin of 6.2 percent and net income of $48,900

Net sales of the company = Net income/Profit margin = $48,900/6.2% = $788,709.68

The cost of goods sold amounted to $379,000.

The common size percentage for the cost of goods sold = (The cost of goods sold/Net sales) x 100% = ($379,000/$788,709.68) x 100% = 48.05%

4 0
3 years ago
Select all the reasons to keep your money in a financial institution.
mr_godi [17]
All of them :) All those reasons.

5 0
3 years ago
Read 2 more answers
The market supply curve indicates the rev: 05_10_2018 Multiple Choice maximum prices that buyers are willing and able to pay for
Yakvenalex [24]

Answer:

The market supply curve shows the minimum prices that all the sellers in the market will be willing to accept for the product.

Explanation:

The market supply curve of a product is the summation of individual supply curves. It represents the minimum acceptable prices of the product that all the firms in the market will be willing to accept.  

The market supply curve is an upward line representing the law of supply. The law of supply states that other things being constant the supply of a product will be directly related to its price. this means that with an increase in the price level, the output level will increase as well.

4 0
3 years ago
What life? and how are you
Masja [62]

Answer:

Life's going good I'm bored but okay but what about u

8 0
3 years ago
Read 2 more answers
Other questions:
  • Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due
    12·1 answer
  • ​after compiling a list of potential customers, a salesperson must
    15·1 answer
  • Burberry's global marketing strategy of offering "affordable luxury" to customers in the United States, with a value proposition
    8·1 answer
  • Menu costs refers to a. the distortion in incentives created by inflation when taxes do not adjust for inflation. b. resources u
    12·1 answer
  • All else equal, the market value of a stock will tend to DECREASE by roughly the amount of the dividend on the:
    6·1 answer
  • Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea
    11·1 answer
  • Classify the following exchanges as "Qualifying" or "Not Qualifying" as a like-kind exchange under § 1031. Qualifies / Not Quali
    5·1 answer
  • On January 1, 2010, Broker Corp. issued $3,000,000 par value 12%, 10 year bonds which pay interest each December 31. If the mark
    9·1 answer
  • Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sal
    6·1 answer
  • Shout Magazine focuses its marketing efforts on reaching teen-aged girls interested in fashion and celebrity culture. The firm b
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!