Exam 10: Accounting for Private Not-For-Profit Organizations

A donor gave artwork to a nongovernmental, not-for-profit museum. The artwork qualified as a "collection," under FASB rules. The not-for-profit could:

Not-for-profit organizations are required to present a Statement of Functional Expenses instead of a Statement of Cash Flows, as required of businesses.

The institution's governing board governing board decided to create an endowment from contributed funds, this is called a(n) ________ and the funds are unrestricted.

If a person names a not-for-profit organization in his or her will, this is considered a(n) ________ and is __________.

Investments in equity and debt securities should be carried at

A Statement of Functional Expenses is required for

A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?

At 12-31-2008, The Halifax Fishing Museum had unrestricted cash of $ 25,000, building and land with a net book value of $ 210,000 and permanently restricted collections totaling $ 120,000. There were no liabilities. The Museum has two programs: Operation of a Fishing Museum and Educational Programs. During the year ended 12-31-2009 the Museum incurred the following transactions: (1) Cash contributions to the Museum included (a) unrestricted $ 410,000, (b) restricted for educational programs $ 33,000 and (c) restricted by the donor for endowment purposes $ 80,000. (2) Additional unrestricted cash receipts included $ 19,900 in fees from individuals and organizations using the Museum building as a meeting facility. Included in this is $ 4,000 for a meeting to be held in January 2008. (3) Donors made pledges in the amount of $ 30,000 that were unrestricted as to purpose, but which are to be expended in 2010. 10% are expected to be uncollectible. (4)Incurred cash expenses:

An unconditional pledge of support is properly recorded as Temporarily Restricted Revenue at the time of the pledge. Changes in the present value of the receivable resulting from the passage of time is reported as:

What are the revenue recognition requirements for: (1) Unconditional promises to give (i.e. pledges), (2) Conditional promises to give, (3) Multi-year pledges, (4) Donated services and (5) Donated materials or fixed assets.

Distinguish between an exchange transaction and a contribution. How is the accounting different for these two events?

A membership pass to Dukes Sports & Fitness (a private not-for-profit organization) includes unlimited rights to all facilities and a health magazine subscription. Non-members do not possess these rights. How must Dukes account for membership dues?

How is an unconditional pledge to contribute to a private not-for-profit organization recorded?

Revenues must be presented separately in the Statement of Activities for the three classes (unrestricted, temporarily restricted and permanently restricted).

Expenses must be presented separately in the Statement of Activities for the three classes (unrestricted, temporarily restricted and permanently restricted).

Which of the following is not a reason for a private not-for-profit to generate a surplus?

Which of the following would be a contribution increasing permanently restricted net assets?

Which of the following factors, if present, would indicate that a transaction is not a contribution?

Which of the following is true of a Statement of Cash Flows for a private sector, not-for-profit organization?