Question 1

The equity section of Statement of Financial Position for private not-for-profits includes which accounts?

Accepted Answer

A)  Unrestricted, Temporarily Restricted, Permanently Restricted. 
B)  Invested in Capital Assets net of related debt, unrestricted net assets. 
C)  Unreserved Fund Balance, Reserved Fund Balance. 
D)  None of the above describes the proper accounting treatment. 
A)  Unrestricted, Temporarily Restricted, Permanently Restricted. 
B)  Invested in Capital Assets net of related debt, unrestricted net assets. 
C)  Unreserved Fund Balance, Reserved Fund Balance. 
D)  None of the above describes the proper accounting treatment.

Question 2

FASB statement 116 requires contributions to be recorded as revenue when

Accepted Answer

A)  The contributed money is actually received. 
B)  The contribution is likely to be received. 
C)  The contribution is promised. 
D)  The contribution is probable and measurable. 
A)  The contributed money is actually received. 
B)  The contribution is likely to be received. 
C)  The contribution is promised. 
D)  The contribution is probable and measurable.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

FASB statement 116 requires contributions to be recorded as revenue when the contributed money is actually received.

Accepted Answer

A) True 
 B)False

Question 5

A donor made a gift of cash to a private not-for-profit organization in 2012 with an expressed purpose restriction.All the funds were expended in 2012.The organization must:

Accepted Answer

A)  Record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted. 
B)  Record the gift and expense as unrestricted. 
C)  Record the gift and expense as temporarily restricted. 
D)  Use either of the methods described in (a) or (b). 
A)  Record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted. 
B)  Record the gift and expense as unrestricted. 
C)  Record the gift and expense as temporarily restricted. 
D)  Use either of the methods described in (a) or (b).

Question 6

Conditional pledges should not be recognized as revenue until the conditions have been met.

Accepted Answer

A) True 
 B)False

Question 7

A donor gave equipment valued at $50,000 at the beginning of 2012 to a private not-for-profit organization.The equipment had a 10-year life and depreciation of $5,000 was charged during 2012.At the end of the year,the net assets to be reported in unrestricted net assets related to this equipment would be:

Accepted Answer

A)  $50,000. 
B)  $45,000. 
C)  $0. 
D)  Either $45,000 or $0, depending upon the policy of the organization. 
A)  $50,000. 
B)  $45,000. 
C)  $0. 
D)  Either $45,000 or $0, depending upon the policy of the organization.

Question 8

Which organization has standard setting authority over state and local governments,including governmentally related not-for-profit organizations such as hospitals colleges and universities?

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  AICPA. 
D)  SEC. 
A)  GASB. 
B)  FASB. 
C)  AICPA. 
D)  SEC.

Question 9

The Statement of Functional expenses can be classified by function (various programs,fund-raising,etc)or by natural classification (salaries,supplies,travel,etc.).

Accepted Answer

A) True 
 B)False

Question 10

Unconditional promises to give are recognized when the promise is made net of estimated uncollectible receivables.

Accepted Answer

A) True 
 B)False

Question 11

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Accepted Answer

A) True 
 B)False

Question 12

Private not-for-profit organizations should have little to no profit.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

Examples of the activities covered by th

Question 14

Donated fixed assets that have not yet been depreciated may be recorded as either unrestricted or temporarily restricted.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following organizations would be subject to the (level b)accounting and reporting requirements of the AICPA's Audit and Accounting Guide: Not-for-Profit Organizations?

Accepted Answer

A)  The International Brotherhood of Electrical Workers. 
B)  St. Jude Children's Hospital. 
C)  Both of the above. 
D)  Neither (a) or (b) above. 
A)  The International Brotherhood of Electrical Workers. 
B)  St. Jude Children's Hospital. 
C)  Both of the above. 
D)  Neither (a) or (b) above.

Question 16

An intention to give is the same as an unconditional promise to give and can be recorded as revenue when the intention is made known.

Accepted Answer

A) True 
 B)False

Question 17

A donor made a pledge in 2011 of $50,000 to a private not-for-profit organization with the intent to pay the cash in 2012 for unrestricted use in 2012.The organization should:

Accepted Answer

A)  Record the pledge receivable and deferred revenue in 2011. 
B)  Record the pledge as unrestricted revenue in 2011. 
C)  Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012. 
D)  Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012, but only in an amount equivalent to the amount that is spent in 2012. 
A)  Record the pledge receivable and deferred revenue in 2011. 
B)  Record the pledge as unrestricted revenue in 2011. 
C)  Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012. 
D)  Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012, but only in an amount equivalent to the amount that is spent in 2012.

Question 18

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?

Accepted Answer

A)  To establish working capital. 
B)  To retire debt. 
C)  Both (a) and (b) above. 
D)  None of the above, not-for-profits should not have surpluses. 
A)  To establish working capital. 
B)  To retire debt. 
C)  Both (a) and (b) above. 
D)  None of the above, not-for-profits should not have surpluses.

Question 19

A Statement of Functional Expenses is required for

Accepted Answer

A)  State governments. 
B)  Tax agencies. 
C)  Voluntary health and welfare organizations. 
D)  Colleges and universities. 
A)  State governments. 
B)  Tax agencies. 
C)  Voluntary health and welfare organizations. 
D)  Colleges and universities.

Question 20

The GASB has the authority to establish accounting and financial reporting standards for state and local governments and private sector not-for-profit organizations.

Accepted Answer

A) True 
 B)False

The equity section of Statement of Financial Position for private not-for-profits includes which accounts?

FASB statement 116 requires contributions to be recorded as revenue when

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

FASB statement 116 requires contributions to be recorded as revenue when the contributed money is actually received.

A donor made a gift of cash to a private not-for-profit organization in 2012 with an expressed purpose restriction.All the funds were expended in 2012.The organization must:

Conditional pledges should not be recognized as revenue until the conditions have been met.

Which organization has standard setting authority over state and local governments,including governmentally related not-for-profit organizations such as hospitals colleges and universities?

The Statement of Functional expenses can be classified by function (various programs,fund-raising,etc)or by natural classification (salaries,supplies,travel,etc.).

Unconditional promises to give are recognized when the promise is made net of estimated uncollectible receivables.

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Private not-for-profit organizations should have little to no profit.

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

Donated fixed assets that have not yet been depreciated may be recorded as either unrestricted or temporarily restricted.

Which of the following organizations would be subject to the (level b)accounting and reporting requirements of the AICPA's Audit and Accounting Guide: Not-for-Profit Organizations?

An intention to give is the same as an unconditional promise to give and can be recorded as revenue when the intention is made known.

A donor made a pledge in 2011 of $50,000 to a private not-for-profit organization with the intent to pay the cash in 2012 for unrestricted use in 2012.The organization should:

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?

A Statement of Functional Expenses is required for

The GASB has the authority to establish accounting and financial reporting standards for state and local governments and private sector not-for-profit organizations.

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

The equity section of Statement of Financial Position for private not-for-profits includes which accounts?

FASB statement 116 requires contributions to be recorded as revenue when

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

FASB statement 116 requires contributions to be recorded as revenue when the contributed money is actually received.

A donor made a gift of cash to a private not-for-profit organization in 2012 with an expressed purpose restriction.All the funds were expended in 2012.The organization must:

Conditional pledges should not be recognized as revenue until the conditions have been met.

Which organization has standard setting authority over state and local governments,including governmentally related not-for-profit organizations such as hospitals colleges and universities?

The Statement of Functional expenses can be classified by function (various programs,fund-raising,etc)or by natural classification (salaries,supplies,travel,etc.).

Unconditional promises to give are recognized when the promise is made net of estimated uncollectible receivables.

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Private not-for-profit organizations should have little to no profit.

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

Donated fixed assets that have not yet been depreciated may be recorded as either unrestricted or temporarily restricted.

Which of the following organizations would be subject to the (level b)accounting and reporting requirements of the AICPA's Audit and Accounting Guide: Not-for-Profit Organizations?

An intention to give is the same as an unconditional promise to give and can be recorded as revenue when the intention is made known.

A donor made a pledge in 2011 of $50,000 to a private not-for-profit organization with the intent to pay the cash in 2012 for unrestricted use in 2012.The organization should:

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?

A Statement of Functional Expenses is required for

The GASB has the authority to establish accounting and financial reporting standards for state and local governments and private sector not-for-profit organizations.

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