Author Question: Plant assets provide benefits over a long period of time. a. True b. False Indicate whether the ... (Read 73 times)

Mimi · **on:** Jul 5, 2018

Plant assets provide benefits over a long period of time.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Ken Labich promises to give a not-for-profit university 2 million for a new library, but only if the university is able to raise an equal amount in cash from other donors. When should the university recognize Ken's promise as revenue?

a. when it receives Ken's promise
b. when it receives Ken's promise, provided it also fully discloses (in notes to the financial statements) the conditions set forth in Roger's promise regarding other contributions
c. gradually; that is, each time it receives cash from another donor, the entity would recognize a portion of Ken's promise as revenue
d. when the conditions imposed by Ken are substantially met; that is, when it receives approximately 2 million in cash from other donors