The net realizable value or present value of unrestricted pledges receivable outstanding at the end of a year for a nongovernmental not-for-profit organization are

Question

Quizplus · Accepted Answer

Unrestricted pledges receivable outstanding at the end of a year for a nongovernmental not-for-profit organization are generally considered temporarily restricted net assets, unless the donor specified that the pledge was intended to finance current year expenses. This is because the organization has not yet received the cash and therefore cannot use it for any purpose until the pledge is fulfilled. If the donor specifically stated their intent for the pledge to be used for current expenses, then it can be considered unrestricted net assets.

The Net Realizable Value or Present Value of Unrestricted Pledges