Quick Care, a not-for-profit organization, received an externally restricted contribution. Quick Care does not have a separate restricted fund for the contribution. Under the restricted fund method, the contribution will be recognized as which of the following?

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Under the restricted fund method, the externally restricted contribution is recognized as revenue in the general fund using the deferral method since Quick Care does not have a separate restricted fund for the contribution. This means that the revenue is recognized in the period when the restrictions are met, typically when the expenses related to the contribution are incurred.

Quick Care, a Not-For-Profit Organization, Received an Externally Restricted Contribution