_____ Under FAS 116, when are conditional promises to give cash recognized in the financial statements?
A) When the promise is received.
B) When the cash is collected.
C) When the promise becomes unconditional in status.
D) When the possibility of occurrence of the condition set forth in the promise becomes remote.
E) None of the above

Question

_____	Under FAS 116, when are conditional promises to give cash recognized in the financial statements?
A) When the promise is received.
B) When the cash is collected.
C) When the promise becomes unconditional in status.
D) When the possibility of occurrence of the condition set forth in the promise becomes remote.
E) None of the above

Quizplus · Accepted Answer

Conditional promises to give are recognized when the conditions on which they depend are substantially met or when the promise becomes unconditional.

_____ Under FAS 116, When Are Conditional Promises to Give Cash