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A Donor Made a Pledge in 2008 of $ 50,000

Question 84

Multiple Choice

A donor made a pledge in 2008 of $ 50,000 to a not-for-profit organization with the intent to pay the cash in 2009 for unrestricted use in 2009. The organization should:


A) Record the pledge receivable and deferred revenue in 2008.
B) Record the pledge as unrestricted revenue in 2008.
C) Record the pledge as temporarily restricted revenue in 2008 and reclassify it to unrestricted in 2009.
D) Record the pledge as temporarily restricted revenue in 2008 and reclassify it to unrestricted in 2009, but only in an amount equivalent to the amount that is spent in 2009.

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