©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP Revenue Recognition. Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Conditions are associated with pledges or receipts provided to a not-for-profit organization in
the event that there is (are): - Answer✔Measurable performance-related barriers or other
barriers relative to the promise or receipt and a right of return of contributed resources or
release of the promisor of any obligation.
Conditional Contribution - Answer✔Conditions are defined as measurable performance-related
barriers or other barriers. These barriers are relative to either a promise to give or a donation
received that are further associated with the donorʹs right to require a return of the donation
from the recipient or right to rescind the promise to give. Both the barrier and right of return
must exist to represent a condition. The existence of conditions relative to donation preclude
the recognition of revenue for not-for-profit organizations.
A simple example of a conditional contribution is a "challenge grant," where a donor agrees to
make a gift upon the donee's achievement of a specified level of fundraising (the challenge) set
by the donor.
Revenue is not recognized until the condition is met.
Right of Return - Answer✔Donor has the right to require return of the donation if contribution
is not met.
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, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
Measurable performance-related barriers that are typically indicative of conditions attached to
promises (pledges) or resources received by a not-for-profit organization would include which
of the following? - Answer✔Entitlement to assets contingent upon the achievement of
producing specific outputs or measurable outcomes.
Entitlement to assets, contingent upon the achievement of producing specific outputs or
measurable outcomes, could be a measurable performance-related barrier that could indicate
the existence of a condition attached to a promise to give or resource received. Measurable
performance-related barriers include specific outputs or outcomes, specified levels of service,
matching requirements, or outside events or contingencies.
Barriers that indicate a conditional contribution - Answer✔performance related barriers or
others:
- specific levels of service
- specific outputs or outcomes
- matching
- outside event
Matching and cost eligibility requirements are both examples of measurable performance-
based barriers or other barriers that could indicate the existence of a condition.
Conditional vs Restricted Revenue - Answer✔Conditional: you get the $ if....
Restricted: You get the $ and you can only use it for a particular purpose
Contribution revenue recognition for not-for-profit organizations is based on the concept of: -
Answer✔Satisfying conditions
Contribution revenue recognition for not-for-profit organizations is based on the standard of
satisfying conditions.
2|P a g e
NFP Revenue Recognition. Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Conditions are associated with pledges or receipts provided to a not-for-profit organization in
the event that there is (are): - Answer✔Measurable performance-related barriers or other
barriers relative to the promise or receipt and a right of return of contributed resources or
release of the promisor of any obligation.
Conditional Contribution - Answer✔Conditions are defined as measurable performance-related
barriers or other barriers. These barriers are relative to either a promise to give or a donation
received that are further associated with the donorʹs right to require a return of the donation
from the recipient or right to rescind the promise to give. Both the barrier and right of return
must exist to represent a condition. The existence of conditions relative to donation preclude
the recognition of revenue for not-for-profit organizations.
A simple example of a conditional contribution is a "challenge grant," where a donor agrees to
make a gift upon the donee's achievement of a specified level of fundraising (the challenge) set
by the donor.
Revenue is not recognized until the condition is met.
Right of Return - Answer✔Donor has the right to require return of the donation if contribution
is not met.
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
Measurable performance-related barriers that are typically indicative of conditions attached to
promises (pledges) or resources received by a not-for-profit organization would include which
of the following? - Answer✔Entitlement to assets contingent upon the achievement of
producing specific outputs or measurable outcomes.
Entitlement to assets, contingent upon the achievement of producing specific outputs or
measurable outcomes, could be a measurable performance-related barrier that could indicate
the existence of a condition attached to a promise to give or resource received. Measurable
performance-related barriers include specific outputs or outcomes, specified levels of service,
matching requirements, or outside events or contingencies.
Barriers that indicate a conditional contribution - Answer✔performance related barriers or
others:
- specific levels of service
- specific outputs or outcomes
- matching
- outside event
Matching and cost eligibility requirements are both examples of measurable performance-
based barriers or other barriers that could indicate the existence of a condition.
Conditional vs Restricted Revenue - Answer✔Conditional: you get the $ if....
Restricted: You get the $ and you can only use it for a particular purpose
Contribution revenue recognition for not-for-profit organizations is based on the concept of: -
Answer✔Satisfying conditions
Contribution revenue recognition for not-for-profit organizations is based on the standard of
satisfying conditions.
2|P a g e
