A contribution was received by the city for the purchase of playground equipment. The contribution would not be recognized as revenue by the permanent fund until the playground equipment has been purchased. True / False.

Question

Viviana Hansen

Business

18 May, 18:40

A contribution was received by the city for the purchase of playground equipment. The contribution would not be recognized as revenue by the permanent fund until the playground equipment has been purchased. True / False.

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Answers (1)

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Cedric Bernard · Answer 1

The correct answer is False.

Explanation:

At the precise moment in which the contribution is taken, the accounting recognition must be carried out, since according to what is stated in this situation, a donation in the form of money is received. After this, the registration corresponding to a purchase will be applied, since this is part of their activity or nature to serve the public interest.