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

For a permanent endowment created by a cash donation, subsequent investment gains that restore the fair value of the endowment fund investments to the donor's stipulated amount are reported as increases in PR net assets.

Regarding public C&U reporting, all public C&Us must present the applicable required supplementary information (RSI) in their annual report.

Under FAS 116, unconditional promises to give are recognized in the financial statements when received-not when collected.

Under FAS 117, the statement of financial position may be in either the classified format (current/noncurrent categories) or the unclassified format.

_____ Under FAS 117, in the absence of donor stipulations, gains recognized on an endowment would be reported in the statement of activities as increases in

Under FAS 116, a communication that is unclear as to whether it constitutes an unconditional promise to give is deemed an unconditional promise if it is legally enforceable.

_____ In 2006, Medd City Hospital (MCH) began operations and had (under its established rate structure) billings of $8,000,000, of which $7,300,000 was collected by year-end. At year-end, a $200,000 allowance for uncollectible accounts was deemed adequate. MCH performed charity services on many patients who could not afford any payments. Based on normal billing rates, the value of this charity care was $500,000-these patients were not billed. MCH gave discounts (against its billings) of $400,000 to third-party payors. What amount would Medd report in the Expenses section of its 2006 statement of operations?

Endowment investment gains and losses on specific donated assets that were received this year and must be held for 50 years are reported as changes to PR net assets.

The hierarchy for determining the appropriate category of net assets in which to report endowment investment gains and losses is __________________________, ___________________________________, and _________________________________.

Under FAS 117, only voluntary health and welfare organizations must show expenses by function in the statement of activities.

In general, contributed services are measured at the __________________________ of the services received. However, recognizable contributed services that create or enhance nonfinancial assets may be recognized instead at the fair value of the ________________________________.

Public NPOs may elect to follow either solely FASB guidance or solely GASB guidance.

_____ For public HCOs, which of the following items is reported separately in the statement of changes in fund balances, rather than in the statement of operations?

Under FAS 116, contributions received must be measured at the present value of estimated future cash flows.

_____ 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? General Appropriations Capital Appropriations a. Nonoperating revenues (expenses) After nonoperating revenues (expenses) b. Revenues Revenues c. Revenues Nonoperating revenues (expenses) d. Nonoperating revenues (expenses) Revenues e. Revenues After nonoperating revenues (expenses)

Endowment investment gains and losses on specific donated assets that must be held for 50 years must be reported as changes to __________________________.

Public HCOs report contributions of both unrestricted noncapital and unrestricted capital assets in the statement of operations.

_____ For a public C&U engaged in business-type activities, investment income is reported in which section of the following statements? Statement of Revenues, Expenses and Changes in Net Assets Cash Flow Statement a. Revenues Operating b. Nonoperating revenues Operating c. Nonoperating revenues Noncapital financing d. Revenues Investing e. Nonoperating revenues Investing

For public C&Us engaged only in business-type activities, the statement of cash flows consists of the following four categories (1) ________________________activities, (2) ____________________________ activities, (3), ____________________________ activities, and (4) ___________________________ activities.

_____ 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? General Appropriations Capital Appropriations a. Nonoperating revenues (expenses) After nonoperating revenues (expenses) b. Revenues Revenues c. Revenues Nonoperating revenues (expenses) d. Nonoperating revenues (expenses) Revenues e. Revenues After nonoperating revenues (expenses)