In accordance with ASC 958,pledges,which are temporarily restricted by donors,are reported as increases in temporarily restricted net assets on the statement of activities of a voluntary health and welfare organization when the
A) pledges are received in cash.
B) cash received from the pledges is expended in accordance with the donors' wishes.
C) pledges are made by the donors.
D) cash is received from the pledges is transferred to unrestricted net assets.

Question

Quizplus · Accepted Answer

Under ASC 958, pledges that are temporarily restricted by donors are recognized as increases in temporarily restricted net assets when the pledges are made by the donors, as this is when the organization has a right to the resources.

In Accordance with ASC 958,pledges,which Are Temporarily Restricted by Donors,are