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

Under FAS 116, conditional promises to give are considered unconditional if the probability that the specified future event will occur is remote.

The AICPA's 1996 HCO audit guide recommends-but does not require-that public HCOs report a measure of operations either (a) in the statement of operations or (b) described in the notes.

_____ For 2006, Sisko State University (SSU) had the following items: What is the total of the items that SSU reports in its nonoperating revenues and expenses section of its statement of revenues, expenses, and changes in net assets for 2006?

_____ A religious organization received a building and land as a gift from a local company with the understanding that the building would be used as a training center for organization members or for any other purpose consistent with the organization's mission. How would the nonprofit organization report the contribution?

_____ For a public C&U engaged in business-type activities, where are the following items reported in the statement of revenues, expenses, and changes in net assets? Capital Appropriations Capital Grants and Gifts a. Nonoperating revenues (expenses) After nonoperating revenues(expenses) b. Operating revenues Revenues c. Revenues Nonoperatingrevenues (expenses) d. Nonoperating revenues (expenses) Revenues e. Revenues After nonoperating revenues(expenses)

_____ Under FAS 117, income earned from temporary endowments that can be spent on only certain programs and that was spent in the year earned would be reported in the statement of activities in the

For a permanent endowment created by a cash donation received this year, $2,000 of this year's $7,000 investment loss could be reported as decreasing TR net assets if $2,000 of the investment dividend income has not yet been spent in the donor's designated manner.

Under FAS 116, contributions that create endowments are always reported in the statement of activities-never as direct adjustments to equity.

Public NPOs may elect to follow all FASB standards issued after 11/30/89.

Endowment investment gains and losses on specific donated assets that must be held in perpetuity are reported as changes to PR net assets.

Under FAS 116, contributions of capital assets are classified as increasing unrestricted net assets when the assets are placed in service only in the absence of donor-imposed restrictions.

Contributed works of art, historical treasures, and similar assets may not be _____________________________________________ capitalized.

_____ A religious organization received a building and land as a gift from a local company with the understanding that the building would be used as a training center for organization members or for any other purpose consistent with the organization's mission. How would the nonprofit organization report the contribution under each of the following assumed board policies regarding a time restriction? a. Temporarily Restricted Temporarily Restricted b. Temporarily Restricted Unrestricted c. Unrestricted Temporarily Restricted d. Unrestricted Unrestricted

Regarding public C&U reporting, one of the categories in the cash flow statement is a cash flows from investing in noncapital assets.

Interest income and dividend income on unrestricted investments are reported above the operating income (loss) line in the statement of operations.

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

_____ For public HCOs, which of the following items is reported in both the statement of operations and the statement of changes in fund balances?

_____ For public HCOs, which of the following manners of reporting is required in the operating statement for amounts released from restrictions?