Question 1

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following contributed services would probably not be recognized as contribution revenue?

Accepted Answer

A)  An attorney donates her services to defend the Girl Scouts in a lawsuit. 
B)  An electrician donates his services to upgrade the electrical service at a mental health clinic. 
C)  State CPA society members hand out informational booklets at a shopping mall. 
D)  A nurse donates her time to collect blood at an American Red Cross blood drive. 
A)  An attorney donates her services to defend the Girl Scouts in a lawsuit. 
B)  An electrician donates his services to upgrade the electrical service at a mental health clinic. 
C)  State CPA society members hand out informational booklets at a shopping mall. 
D)  A nurse donates her time to collect blood at an American Red Cross blood drive.

Question 3

In 2012,Susan tells The Art Museum,a private not-for-profit organization,that she has named the museum in her will.When should the organization recognize the contribution revenue?

Accepted Answer

A)  When Susan dies and the will is declared valid. 
B)  Ratably over a five year period beginning in 2013. 
C)  All in 2012. 
D)  When the Museum receives the contribution. 
A)  When Susan dies and the will is declared valid. 
B)  Ratably over a five year period beginning in 2013. 
C)  All in 2012. 
D)  When the Museum receives the contribution.

Question 4

Which of the following is not correct with respect to acquisitions under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

Accepted Answer

A)  If the combination qualifies as an acquisition, the not-for-profit may acquire control of a business enterprise or other not-for-profit organization and will be accounted for using the acquisition method. 
B)  Combinations not meeting the definition of a merger are reported as acquisitions. 
C)  Assets and liabilities of the acquired entity are recorded at fair value on the books of the not-for-profit. 
D)  Entities that derive their revenues from business-like activities are required to expense the goodwill at the date of acquisition. 
A)  If the combination qualifies as an acquisition, the not-for-profit may acquire control of a business enterprise or other not-for-profit organization and will be accounted for using the acquisition method. 
B)  Combinations not meeting the definition of a merger are reported as acquisitions. 
C)  Assets and liabilities of the acquired entity are recorded at fair value on the books of the not-for-profit. 
D)  Entities that derive their revenues from business-like activities are required to expense the goodwill at the date of acquisition.

Question 5

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

Accepted Answer

A)  The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received. 
B)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased. 
C)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income. 
D)  Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization. 
A)  The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received. 
B)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased. 
C)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income. 
D)  Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization.

Question 6

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

Accepted Answer

A)  Conditional promise to give; not recorded. 
B)  Unconditional promise to give; recorded. 
C)  Intention to give; recorded. 
D)  Intention to give; not recorded. 
A)  Conditional promise to give; not recorded. 
B)  Unconditional promise to give; recorded. 
C)  Intention to give; recorded. 
D)  Intention to give; not recorded.

Question 7

Which of the following is true regarding the Statement of Cash Flows for nongovernmental,not-for-profit organizations?

Accepted Answer

A)  Either the direct or indirect method may be used. 
B)  If a not-for-profit organization received a cash contribution for permanently restricted purposes, that cash contribution would be shown as a cash flow from financing activities. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Either the direct or indirect method may be used. 
B)  If a not-for-profit organization received a cash contribution for permanently restricted purposes, that cash contribution would be shown as a cash flow from financing activities. 
C)  Both of the above. 
D)  Neither of the above.

Question 8

Voluntary health and welfare organizations promote the general health and well-being of the public.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing. 
B)  Either the direct or indirect method is acceptable. 
C)  Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories. 
D)  None of the above; all are true. 
A)  Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing. 
B)  Either the direct or indirect method is acceptable. 
C)  Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories. 
D)  None of the above; all are true.

Question 10

Private not-for-profit organizations are not required to record depreciation expense.

Accepted Answer

A) True 
 B)False

Question 11

FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received. 
A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received.

Question 14

The FASB has the authority to set accounting standards for all of the following organizations except:

Accepted Answer

A)  Political parties. 
B)  For profit hospitals. 
C)  Trade associations. 
D)  State colleges. 
A)  Political parties. 
B)  For profit hospitals. 
C)  Trade associations. 
D)  State colleges.

Question 15

Present and potential donors are the primary users of private not-for-profit financial statements.

Accepted Answer

A) True 
 B)False

Question 16

Assets that are restricted by an organization's board can be reported as either temporarily restricted or permanently restricted,according to the board's intentions.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

Accepted Answer

A)  Expenses are shown only as decreases in unrestricted net assets. 
B)  Reclassifications for expiration of time restrictions are shown in the revenues and support section. 
C)  Unrealized gains or losses on investments are shown only as increases in unrestricted net assets. 
D)  Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes. 
A)  Expenses are shown only as decreases in unrestricted net assets. 
B)  Reclassifications for expiration of time restrictions are shown in the revenues and support section. 
C)  Unrealized gains or losses on investments are shown only as increases in unrestricted net assets. 
D)  Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

Question 18

The Statement of Cash Flows for a private not-for-profit organization has four different classifications of cash flows.

Accepted Answer

A) True 
 B)False

Question 19

A private not-for-profit reports all expenses in unrestricted net asset class.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Which of the following contributed services would probably not be recognized as contribution revenue?

In 2012,Susan tells The Art Museum,a private not-for-profit organization,that she has named the museum in her will.When should the organization recognize the contribution revenue?

Which of the following is not correct with respect to acquisitions under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

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

Which of the following is true regarding the Statement of Cash Flows for nongovernmental,not-for-profit organizations?

Voluntary health and welfare organizations promote the general health and well-being of the public.

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

Private not-for-profit organizations are not required to record depreciation expense.

FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

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

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

The FASB has the authority to set accounting standards for all of the following organizations except:

Present and potential donors are the primary users of private not-for-profit financial statements.

Assets that are restricted by an organization's board can be reported as either temporarily restricted or permanently restricted,according to the board's intentions.

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

The Statement of Cash Flows for a private not-for-profit organization has four different classifications of cash flows.

A private not-for-profit reports all expenses in unrestricted net asset class.

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

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

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Which of the following contributed services would probably not be recognized as contribution revenue?

In 2012,Susan tells The Art Museum,a private not-for-profit organization,that she has named the museum in her will.When should the organization recognize the contribution revenue?

Which of the following is not correct with respect to acquisitions under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

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

Which of the following is true regarding the Statement of Cash Flows for nongovernmental,not-for-profit organizations?

Voluntary health and welfare organizations promote the general health and well-being of the public.

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

Private not-for-profit organizations are not required to record depreciation expense.

FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

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

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

The FASB has the authority to set accounting standards for all of the following organizations except:

Present and potential donors are the primary users of private not-for-profit financial statements.

Assets that are restricted by an organization's board can be reported as either temporarily restricted or permanently restricted,according to the board's intentions.

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

The Statement of Cash Flows for a private not-for-profit organization has four different classifications of cash flows.

A private not-for-profit reports all expenses in unrestricted net asset class.

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

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

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