Henry Highbrow promises to donate $50,000 to his church toward the purchase of a new pipe organ if the church is able to raise matching funds of $50,000 from other contributors.At what point should the church record revenue?

Question

Quizplus · Accepted Answer

Revenue should be recorded when the matching funds are raised, which is the condition that Henry has set for making his donation. Once the $50,000 is raised, it can be considered a binding promise and the church can record revenue on its books. The actual purchase of the organ or the receipt of the donation from Henry will occur at a later point.

Henry Highbrow Promises to Donate $50,000 to His Church Toward