_____ Under FAS 116, which of the following contributions are credited to a Deferred Revenues account until spending occurs?
A) Contributions restricted as to purpose.
B) Contributions restricted as to time period.
C) Contributions restricted as to both purpose and time period.
D) Contributions to be spent on acquiring capital assets.
E) None of the above.

Question

_____	Under FAS 116, which of the following contributions are credited to a Deferred Revenues account until spending occurs?
A) Contributions restricted as to purpose.
B) Contributions restricted as to time period.
C) Contributions restricted as to both purpose and time period.
D) Contributions to be spent on acquiring capital assets.
E) None of the above.

Quizplus · Accepted Answer

Under FAS 116, contributions are recognized as revenue in the period they are received, not deferred, even if they are restricted as to purpose or time.

_____ Under FAS 116, Which of the Following Contributions Are Credited