Chapter 19, Problem 19.24.2P

To determine

Concept Introduction:

Pledges received by a research organisation:

Generally a research organisation receives pledges as a form of contribution. These can be restricted or unrestricted for use. Sometimes some pledges are uncollectible. In that case, revenue should be recognised when the pledges are received or it is sure that pledges will be collected.

:

If the statement ‘Pledges that are received by a research organisation result in recording revenue net of estimated uncollectible pledges.’is True or False.