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
what is an office???????????????????????????????????????????????????????????????????????????????????????????????????????????????
Pepsi [2]

Answer:

An office is a position of authority or service, typically one of a public nature.

3 0
3 years ago
Read 2 more answers
Assume that bananas cost $0.50 in 2002 and $1 in 2007, whereas pears cost $1 in 2002 and $1.50 in 2007. Suppose that 4 bananas w
daser333 [38]

Answer:

Real GDP [2002]  = 5, Real GDP [2007]  = 6.5, Nominal GDP [2002] = 5, Nominal GDP [2007] = 11

GDP Deflator = 169, Implicit Inflation rate = 69%

Explanation:

Real GDP is the value of goods & services produced, at base year prices. Current year = 2007, Base year = 2002 here.

2002 : Qb = 4 , Qp = 3  , Pb = 0.5  , Pp = 1

2007 :  Qb = 5 , Qp = 4 , Pb = 1 , Pp =  1.5

Real GDP  [2002] = Pb(02) Qb(02) + Pp(02) Qp(02)

= (0.5)4 + 1(3) = 2 + 3 = 5

Real GDP [2007] = Pb(02) Qb(07) + Qp(07) Pp(02)

= 0.5 (5) + 1 (4) = 2.5 + 4 = 6.5

Nominal GDP [2002] = Pb(02) Qb(02) + Pp(02) Qp(02)

= (0.5)4 + 1(3) = 2 + 3 = 5

Nominal GDP [2007] = Pb(07) Qb(07) + Pp(07) Qp(07)

= 1 (5) + 1.5 (4) = 5 + 6 = 11

GDP Deflator [currrent year 07] = Nominal GDP (07) / Real  GDP (07) x 100

(11 / 6.5) x 100 ~ 169

So, implicit inflation rate is 69%

6 0
3 years ago
Joss is a marketing consultant Iris and Daphne are potential customers interested in commissioning Joss to undertake a market su
Norma-Jean [14]

Answer:

(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.

Explanation:

Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.

8 0
3 years ago
Jacob and Mason go to a diner that sells burritos for $5 and tacos for $3. They agree to split the lunch bill evenly. Mason choo
Rainbow [258]

Answer:

$1

Explanation:

The marginal cost refers to the cost of producing one additional unit or serving one more customer.

In this case, we have to determine the additional cost of Jacob ordering a burrito instead of a taco. As Mason chose the tacos and they agreed to split the lunch bill evenly, if Jacob decides to eat the tacos, the cost for each of them is:

$3+$3=$6/2= $3

If Jacob decides to eat the burrito:

$3+$5= $8/2= $4

So, the marginal cost to Jacob ordering a burrito is:

$4-$3= $1

7 0
3 years ago
In the actual economy, goods and services are purchased byA. households, but not firms or the government. B. households and the
GenaCL600 [577]

Answer:

C. households, firms, and the government.

Explanation:

In the actual economy, goods and services are purchased by households, firms, and the government.

7 0
3 years ago
Other questions:
  • The Green Company, an accrual basis taxpayer, provides businessconsulting services. Clients generally pay a retainer at the begi
    6·1 answer
  • For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculati
    15·1 answer
  • In school, we are trying to learn about the problem with Trump's Impeachment. I wanted to know, "Do you agree with going with Tr
    9·2 answers
  • the temporary difference is $60 million. Payne has no other temporary differences and no valuation allowance for the deferred ta
    12·1 answer
  • On December 1, after making a concerted effort, management determines that it will be unable to collect $1,200 owed to it by one
    14·1 answer
  • A consumer is said to be indifferent between two consumption bundles _________.a. when the consumer doesn't care about his or he
    12·1 answer
  • Select the correct answer.
    15·1 answer
  • Do do this my Name is what???
    12·1 answer
  • The impact of interest rate changes in the PV of $100 due in 20 years compared to the PV of $100 due in one year are:
    14·1 answer
  • Lindsay needs to purchase a car. The car Lindsay is planning on
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!