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 :)
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 :)
