Which of the following would not be correct with respect to accounting for colleges and universities under the jurisdiction of the FASB? A) Contributed services should be recognized only when the services create or enhance nonfinancial assets or require specialized skills, are provided by an individual possessing those skills, and would typically be purchased if not provided by donation B) Unconditional pledges are deferred and recognized as revenue when collected. C) Depreciation is recorded D) Investments in stock with determinable fair values and all debt securities are reported at market value

Question

Quizplus · Accepted Answer

A private university must follow FASB standards. FASB standards require the recognition of unconditional pledges of support as revenue when the pledge is made. A public university must follow GASB standards. Pledges to be received by a public college or university in the future have an implied time restriction since funds cannot be expended until received. The restriction is an eligibility requirement and when the money is received the eligibility requirement is met.

Which of the Following Would not Be Correct with Respect