Final answer:
True.Public colleges and universities do indeed recognize contribution revenue in the year in which the unconditional pledge is made, in accordance with accounting principles.
Step-by-step explanation:
The question pertains to when public colleges and universities recognize contribution revenue. The answer is true; public colleges and universities do recognize contribution revenue in the year in which an unconditional pledge is made. This treatment is in alignment with accounting principles that require recognition of revenues when they are earned or when the pledge is made, provided that the pledge is unconditional and its collection is reasonably assured.
Donations are essential in bridging the financial requirement gap, as public funding is often insufficient to cover all expenses. This is particularly relevant in times when some contemporary elected officials and corporate interests oppose progressive taxation, making public education expensive. Pledges from individuals and organizations thus become vital to provide students, including those from the working class, with educational opportunities they might otherwise be unable to afford.