Exam 26: Not-For-Profit Organizations: Introduction and Private Npos

The unrestricted net asset category in the statement of financial position could be subdivided between (a) ________________________________________ net assets and (b) ______________________ net assets.

Contributions are ______________________transfers of cash or other assets.

_____ On 5/5/05, a donor contributed an equity security having a $500,000 fair value. The donor stipulated that (a) the NPO may sell the equity security at any time and make other suitable investments, (b) the $500,000 endowment must remain intact in perpetuity, and (c) the income and gains may be spent only on diabetes research (no mention is made regarding the treatment of losses). The equity security had a fair value of $530,000 at 12/31/05. (No dividends were received in 2005.) Which of the following categories of net assets is impacted at 12/31/05?

Under FAS 116, contributed services are recognized only if they create or enhance nonfinancial assets.

Regarding public C&U reporting, a cash flow statement may or may not have to be presented.

_____ Status State University (SSU) has volunteers who (a) regularly provide teaching services to SSU and (b) are paid only nominal amounts to reimburse them for their commuting costs. During 2006, SSU paid $33,000 to these volunteers (retired scientists who teach science courses on a part-time basis). The gross value of services performed by these volunteers amounted to $400,000. What amount should be reported for expenditures in 2006 for these volunteers' services?

_____ Under FAS 117, voluntary health and welfare organizations must present

In general, contributions are recognized ________________________________.

_____ For public HCOs, which of the following items are shown below the operating profit or loss line in the statement of operations?

_____ Under FAS 117, which of the following items could not be reported at their net amounts?

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, interest on capital asset-related debt is reported in the nonoperating revenues and expenses section.

_____ For a public C&U engaged only in governmental activities, which of the following financial statements is required?

A medical school hospital of a public university is accounted for as an Enterprise Fund of the public university.

For a public C&U that presents a statement of revenues, expenses, and changes in net assets, unrestricted gifts received are reported in the nonoperating revenues and expenses section.

Under FAS 116, income earned on endowments (other than term endowments) is reported as increasing permanently restricted net assets.

Under FAS 116, contributed services that create or enhance a nonfinancial asset must be recorded at the fair value of the asset created or enhanced.

For public C&Us, the two kinds of appropriations that exist are ________________________ and ___________________________.

Under FAS 117, revenues, gains, and other support must be reported by __________________________________ in the statement of activities.

_____ In a public C&U's statement of cash flows, interest received on endowment investments is reported in which category?

Under FAS 116, the definition of contributions does not include conditional promises to give.