A major corporation makes a donation of $10,000,000 to the local art museum foundation for the construction of a new art museum provided the community can match the $10,000,000 with other donations.At the time the donation is received, it should be recorded as:

Question

Quizplus · Accepted Answer

This is recorded as a Refundable Advance because the donation comes with a condition that the community must match the $10,000,000 with other donations. Until that condition is met, the funds are not considered revenue and are instead treated as a liability.

A Major Corporation Makes a Donation of $10,000,000 to the Local