Unconditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables.

Question

Quizplus · Accepted Answer

Unconditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables, according to generally accepted accounting principles (GAAP). This means that organizations must estimate how much of the promised donation they will actually receive, and deduct that estimated amount from the total promised amount when recognizing the revenue or support.

Unconditional Promises to Give Are Recognized as Revenue or Support