F6: NFP Revenue Recognition Questions and Answers 100% Correct

F6: NFP Revenue Recognition Questions and
Answers 100% Correct

What are multiyear pledges recorded at? NPV at the date the pledge is made.




What are future collections recorded as for the purposes of a multiyear pledge? Donor-

restricted revenues & net Assets (time-restricted)


What is an exchange transaction? An transaction in which the NFP earns resources in

exchange for a service provided. Ex: Cash for medical care from a NFP




When are Revenues Recognized for NFP's? When Realized or When Realizable &

EARNED




What are the steps of General Revenue Recognition? 1. Contract Identification


2. Performance Obligation

3. Transaction Price

4. Allocate!

5. Recognize :)