Item$2$

$2\mathrm{.}5$points

Time Remaining $1$ hour $13$ minutes $10$ seconds

$01$:$13$:$10$

Item $2$

Time Remaining $1$ hour $13$ minutes $10$ seconds

$01$:$13$:$10$

TB MC Qu$.10-73$ Which of the following is part...

Which of the following is part of the treatment of multi$-$year pledges as required by FASB Statement No$.116?$

Multiple Choice

At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased.

The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received.

Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization.

At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income.