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The FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions) only when received in cash.

A. True
B. False

1 Answer

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Final answer:

The FASB requires that not-for-profit organizations record unconditional pledges as support when the pledge is made, not only when received in cash, making the statement false.

Step-by-step explanation:

The statement that the Financial Accounting Standards Board (FASB) requires not-for-profit organizations to record unconditional pledges as support (contributions) only when received in cash is false. According to the FASB's accounting standards, not-for-profit organizations should recognize unconditional promises to give as revenue in the period the pledge is made, even if the cash is received in a different period. An unconditional pledge is a promise to give that does not depend on a specified event, condition, or circumstance and thus must be recorded at its net realizable value as support when the pledge is made.

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