[Kls238]

I’m struggling with NFP mainly due to wording. For example, the following question:

During the year, Public College received the following:

An unrestricted $50,000 pledge to be paid the following year

A $25,000 cash gift restricted for scholarships

A notice from a recent graduate that the college is named as a beneficiary of $10,000 in that graduate’s will

What amount of contribution revenue should Public College report in its statement of activities?

The answer is $75,000 with an explanation that states the following:

The unrestricted cash gift and the gift restricted for scholarships should be reported as contribution revenue currently. The naming of the college as a beneficiary in a will can be changed and is dependent upon future uncertainties. It should not be recognized at this time.

Shouldn’t it be $25,000? I thought receiving cash with a condition attached was to be reported as a refundable advance? I feel like most of NFP’s questions contradict what becker says. Anyone have any good sources to learn this because I’m really confused when to report revenue and when not to. Thanks

Passed all sections.