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

The church should record revenue when the matching funds are raised. This is because Henry's donation is contingent on the matching funds being raised, so the revenue cannot be recognized until this condition is met. Once the matching funds are raised, the church can be reasonably assured that the donation from Henry will also be received, and therefore can record the revenue at that time.

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