Question 1

A Statement of Functional Expenses is required for Voluntary health and welfare organizations.

Accepted Answer

A) True 
 B)False  True

Question 2

Net Assets must be presented separately in the Statement of Financial Position for the three classes (unrestricted,temporarily restricted,and permanently restricted).

Accepted Answer

A) True 
 B)False  True

Question 3

Contributed services are recognized as revenue for a private not-for-profit when the service:

Accepted Answer

A)  Is related to administration and fund raising activities. 
B)  Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation. 
C)  A and B are both required for the service to be recorded as revenue 
D)  None of the above, contributed services are not recorded as revenue 
A)  Is related to administration and fund raising activities. 
B)  Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation. 
C)  A and B are both required for the service to be recorded as revenue 
D)  None of the above, contributed services are not recorded as revenue B

Question 4

Which of the following pledges of support would not be recognized in the year the pledge was made?

Accepted Answer

A)  A pledge with no restrictions, but conditional on receiving matching pledges. 
B)  An unconditional pledge restricted to a particular purpose. 
C)  An unconditional pledge restricted to a particular year in the future. 
D)  None of the above - all would be recognized. 
A)  A pledge with no restrictions, but conditional on receiving matching pledges. 
B)  An unconditional pledge restricted to a particular purpose. 
C)  An unconditional pledge restricted to a particular year in the future. 
D)  None of the above - all would be recognized.

Question 5

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale.In recording the sale,Care should:

Accepted Answer

A)  Record a gain of $5,000. 
B)  Record "proceeds from sale of land" of $30,000. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above. 
A)  Record a gain of $5,000. 
B)  Record "proceeds from sale of land" of $30,000. 
C)  Both (a) and (b) above. 
D)  Neither (a) nor (b) above.

Question 6

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

Accepted Answer

A) True 
 B)False

Question 7

Fixed assets may be recorded by a private not-for-profit as temporarily restricted or unrestricted,depending on the policy of the organization.

Accepted Answer

A) True 
 B)False

Question 8

Uptown Church received a donation of marketable equity securities from a church member.In reviewing the financial press,it is determined that the securities had appreciated during the year.At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

Accepted Answer

A)  Market value at the date of receipt. 
B)  Market value at the balance sheet date. 
C)  Donor's cost. 
D)  The lower of a, b or c. 
A)  Market value at the date of receipt. 
B)  Market value at the balance sheet date. 
C)  Donor's cost. 
D)  The lower of a, b or c.

Question 9

Answer the following questions regarding financial reporting by private not-for-profit organizations.
(1)What are the required financial statements?
(2)What organizations are required to present a Statement of Functional Expenses?
(3)What are the three classes of Net Assets?

Accepted Answer

(1)The financial reports are (a)Statemen

Question 10

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Accepted Answer

A)  Reported only as a exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for. 
A)  Reported only as a exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for.

Question 11

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted,temporarily restricted and permanently restricted.

Accepted Answer

A) True 
 B)False

Question 12

All donated services are recognized as revenue.

Accepted Answer

A) True 
 B)False

Question 13

When should unconditional pledges be recorded as revenue?

Accepted Answer

A)  Never. 
B)  When money is received. 
C)  When the pledge is made. 
D)  None of the above. 
A)  Never. 
B)  When money is received. 
C)  When the pledge is made. 
D)  None of the above.

Question 14

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

Accepted Answer

A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes. 
A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes.

Question 15

A Statement of Functional Expenses is required for tax agencies.

Accepted Answer

A) True 
 B)False

Question 16

A private not-for-profit's expenses are reported by function,program or supporting,in the Statement of Activities or in the notes.

Accepted Answer

A) True 
 B)False

Question 17

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

Accepted Answer

A) True 
 B)False

Question 18

Henry Highbrow promises to donate $50,000 to his church toward the purchase of a new pipe organ if the church is able to raise matching funds of $50,000 from other contributors.At what point should the church record revenue?

Accepted Answer

A)  When the matching funds are raised. 
B)  When the organ is purchased. 
C)  When Henry makes his pledge. 
D)  When Henry pays the $50,000 to the church. 
A)  When the matching funds are raised. 
B)  When the organ is purchased. 
C)  When Henry makes his pledge. 
D)  When Henry pays the $50,000 to the church.

Question 19

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis.

Accepted Answer

A) True 
 B)False

Question 20

Private not-for-profit entities are usually primarily concerned with which of the following performance measures?

Accepted Answer

A)  Their Program Expense Ratio. 
B)  Return on Investment. 
C)  Change in Net Assets. 
D)  Ending Unrestricted Net Assets. 
A)  Their Program Expense Ratio. 
B)  Return on Investment. 
C)  Change in Net Assets. 
D)  Ending Unrestricted Net Assets.

A Statement of Functional Expenses is required for Voluntary health and welfare organizations.

Net Assets must be presented separately in the Statement of Financial Position for the three classes (unrestricted,temporarily restricted,and permanently restricted).

Contributed services are recognized as revenue for a private not-for-profit when the service:

Which of the following pledges of support would not be recognized in the year the pledge was made?

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale.In recording the sale,Care should:

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

Fixed assets may be recorded by a private not-for-profit as temporarily restricted or unrestricted,depending on the policy of the organization.

Uptown Church received a donation of marketable equity securities from a church member.In reviewing the financial press,it is determined that the securities had appreciated during the year.At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

Answer the following questions regarding financial reporting by private not-for-profit organizations. (1)What are the required financial statements? (2)What organizations are required to present a Statement of Functional Expenses? (3)What are the three classes of Net Assets?

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted,temporarily restricted and permanently restricted.

All donated services are recognized as revenue.

When should unconditional pledges be recorded as revenue?

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

A Statement of Functional Expenses is required for tax agencies.

A private not-for-profit's expenses are reported by function,program or supporting,in the Statement of Activities or in the notes.

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

Henry Highbrow promises to donate $50,000 to his church toward the purchase of a new pipe organ if the church is able to raise matching funds of $50,000 from other contributors.At what point should the church record revenue?

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis.

Private not-for-profit entities are usually primarily concerned with which of the following performance measures?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

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

A Statement of Functional Expenses is required for Voluntary health and welfare organizations.

Net Assets must be presented separately in the Statement of Financial Position for the three classes (unrestricted,temporarily restricted,and permanently restricted).

Contributed services are recognized as revenue for a private not-for-profit when the service:

Which of the following pledges of support would not be recognized in the year the pledge was made?

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale.In recording the sale,Care should:

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

Fixed assets may be recorded by a private not-for-profit as temporarily restricted or unrestricted,depending on the policy of the organization.

Uptown Church received a donation of marketable equity securities from a church member.In reviewing the financial press,it is determined that the securities had appreciated during the year.At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

Answer the following questions regarding financial reporting by private not-for-profit organizations. (1)What are the required financial statements? (2)What organizations are required to present a Statement of Functional Expenses? (3)What are the three classes of Net Assets?

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted,temporarily restricted and permanently restricted.

All donated services are recognized as revenue.

When should unconditional pledges be recorded as revenue?

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

A Statement of Functional Expenses is required for tax agencies.

A private not-for-profit's expenses are reported by function,program or supporting,in the Statement of Activities or in the notes.

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

Henry Highbrow promises to donate $50,000 to his church toward the purchase of a new pipe organ if the church is able to raise matching funds of $50,000 from other contributors.At what point should the church record revenue?

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis.

Private not-for-profit entities are usually primarily concerned with which of the following performance measures?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters