Question 1

After the issuing of Statement 117,not-for-profit financial statements are relatively standardized across industries.

Accepted Answer

A) True 
 B)False

Question 2

Performing arts organizations are an example of other private not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 3

Assume that The Sandy Creek Nature Center,a private not-for-profit organization,started the fiscal year ending December 31,2012 with $55,543 in temporarily restricted net assets.The amounts are restricted for the following:
● restricted for educational programs relating to preservation of wetlands $15,240.
● restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired)and
● a promise to provide $4,000 each of the next six years for general support.Assume the pledge was made on December 31,2011 and the present value of six (January 1)payments discounted at 5 percent is $20,303.
During the fiscal year ended December 31,2012,the following transactions occur:
(a)The first $4,000 installment on the pledge receivable was received.
(b)Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $11,250.
(c)The $20,000 received in a prior year for equipment,together with an additional $25,500 was used to acquire equipment.
(d)Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required:
 Prepare the journal entries necessary for the above transactions:

Accepted Answer

The answer of Assume that The Sandy Creek Nature Center,a...

Question 4

A Statement of Functional Expenses,which is required for voluntary health and welfare organizations,presents a matrix of expenses classified by function and by object or natural classification.

Accepted Answer

A) True 
 B)False

Question 5

The entry to record the expiration of program restrictions includes which of the following?

Accepted Answer

A)  Debit Reclassification from Temporarily Restricted Net Assets. 
B)  Credit Performance Expense. 
C)  Debit Reclassification to Unrestricted Net Assets. 
D)  Credit Reclassification from Temporarily Restricted Net Assets. 
A)  Debit Reclassification from Temporarily Restricted Net Assets. 
B)  Credit Performance Expense. 
C)  Debit Reclassification to Unrestricted Net Assets. 
D)  Credit Reclassification from Temporarily Restricted Net Assets.

Question 6

A private not-for-profit reports expenses in either the unrestricted net asset class or restricted net asset class,as appropriate.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not correct with respect collections held by private not-for-profit organizations?

Accepted Answer

A)  If a collection is sold, the proceeds must be reinvested in another collection. 
B)  If recorded, collections are recorded as permanently restricted assets. 
C)  If collections are not recorded, note disclosures are required. 
D)  All of the above are correct. 
A)  If a collection is sold, the proceeds must be reinvested in another collection. 
B)  If recorded, collections are recorded as permanently restricted assets. 
C)  If collections are not recorded, note disclosures are required. 
D)  All of the above are correct.

Question 8

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Accepted Answer

A)  Colleges and universities. 
B)  Voluntary health and welfare organizations. 
C)  Homeowners' Associations. 
D)  County governments. 
A)  Colleges and universities. 
B)  Voluntary health and welfare organizations. 
C)  Homeowners' Associations. 
D)  County governments.

Question 9

Which of the following would not be an example of a voluntary health and welfare organization?

Accepted Answer

A)  A city owned hospital. 
B)  A private mental health facility. 
C)  A family planning agency. 
D)  A food bank. 
A)  A city owned hospital. 
B)  A private mental health facility. 
C)  A family planning agency. 
D)  A food bank.

Question 10

Under FASB Statement 117,reclassifications of net assets are not made:

Accepted Answer

A)  For satisfaction of time restrictions. 
B)  For satisfaction of program restrictions. 
C)  If the governing board decides to permanently place assets in an endowment. 
D)  None of the above. 
A)  For satisfaction of time restrictions. 
B)  For satisfaction of program restrictions. 
C)  If the governing board decides to permanently place assets in an endowment. 
D)  None of the above.

Question 11

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.16,Appendix D?

Accepted Answer

A)  Operating purposes other than to provide goods or services at a profit. 
B)  Absence of ownership interests like those of business enterprises. 
C)  Contributions of significant amounts of resources from resources providers who do not expect commensurate or proportionate pecuniary return. 
D)  Upon dissolution of the organization, remaining assets are to be distributed to the original contributors. 
A)  Operating purposes other than to provide goods or services at a profit. 
B)  Absence of ownership interests like those of business enterprises. 
C)  Contributions of significant amounts of resources from resources providers who do not expect commensurate or proportionate pecuniary return. 
D)  Upon dissolution of the organization, remaining assets are to be distributed to the original contributors.

Question 12

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

Accepted Answer

A)  Record a liability, as it is acting as an agent for the donation. 
B)  Record the donated cash as a contribution. 
C)  Not record the donation at all, but disclose it in the notes. 
D)  Record the scholarship awarded as a reduction of revenue. 
A)  Record a liability, as it is acting as an agent for the donation. 
B)  Record the donated cash as a contribution. 
C)  Not record the donation at all, but disclose it in the notes. 
D)  Record the scholarship awarded as a reduction of revenue.

Question 13

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

Accepted Answer

A)  As revenue when pledged. 
B)  Not recorded until received. 
C)  As unearned revenue. 
D)  None of the above. 
A)  As revenue when pledged. 
B)  Not recorded until received. 
C)  As unearned revenue. 
D)  None of the above.

Question 14

The three classes of net assets reported for a private not-for-profit organization include all of the following except:

Accepted Answer

A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Capital restricted net assets. 
D)  Permanently restricted net assets. 
A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Capital restricted net assets. 
D)  Permanently restricted net assets.

Question 15

Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides:
 Not-for-Profit Organizations and Health Care Organizations.

Accepted Answer

A) True 
 B)False

Question 16

According to FASB Statement No.16,Appendix D,how are not-for-profit organizations distinguished from a business?

Accepted Answer

An organization that posses the followin

Question 17

According to FASB,which of the following is not something that distinguishes a private not-for-profit organization from a business?

Accepted Answer

A)  Absence of ownership interests. 
B)  Operating purposes other than to provide goods or services at a profit. 
C)  Lack of ability to earn a profit. 
D)  Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return. 
A)  Absence of ownership interests. 
B)  Operating purposes other than to provide goods or services at a profit. 
C)  Lack of ability to earn a profit. 
D)  Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return.

Question 18

What are the financial statements required for all nongovernmental,not-for-profit organizations?

Accepted Answer

A)  Statement of Financial Position, Statement of Activities, Statement of Cash Flows. 
B)  Statement of Financial Position, Statement of Activities, Statement of Functional Expenses 
C)  Statement of Financial Position, Statement of Activities, Statement of Functional Expenses. 
D)  Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses 
A)  Statement of Financial Position, Statement of Activities, Statement of Cash Flows. 
B)  Statement of Financial Position, Statement of Activities, Statement of Functional Expenses 
C)  Statement of Financial Position, Statement of Activities, Statement of Functional Expenses. 
D)  Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses

Question 19

A Statement of Functional Expenses is required for public colleges and universities.

Accepted Answer

A) True 
 B)False

Question 20

The Statement of Functional Expenses:

Accepted Answer

A)  Is required of voluntary health and welfare organizations only. 
B)  Is required of all private not-for-profit organizations. 
C)  Is required of all private colleges but not public colleges. 
D)  Is no longer a required financial statement of any organization. 
A)  Is required of voluntary health and welfare organizations only. 
B)  Is required of all private not-for-profit organizations. 
C)  Is required of all private colleges but not public colleges. 
D)  Is no longer a required financial statement of any organization.

After the issuing of Statement 117,not-for-profit financial statements are relatively standardized across industries.

Performing arts organizations are an example of other private not-for-profit organizations.

A Statement of Functional Expenses,which is required for voluntary health and welfare organizations,presents a matrix of expenses classified by function and by object or natural classification.

The entry to record the expiration of program restrictions includes which of the following?

A private not-for-profit reports expenses in either the unrestricted net asset class or restricted net asset class,as appropriate.

Which of the following is not correct with respect collections held by private not-for-profit organizations?

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Which of the following would not be an example of a voluntary health and welfare organization?

Under FASB Statement 117,reclassifications of net assets are not made:

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.16,Appendix D?

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

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

The three classes of net assets reported for a private not-for-profit organization include all of the following except:

Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides: Not-for-Profit Organizations and Health Care Organizations.

According to FASB Statement No.16,Appendix D,how are not-for-profit organizations distinguished from a business?

According to FASB,which of the following is not something that distinguishes a private not-for-profit organization from a business?

What are the financial statements required for all nongovernmental,not-for-profit organizations?

A Statement of Functional Expenses is required for public colleges and universities.

The Statement of Functional Expenses:

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

After the issuing of Statement 117,not-for-profit financial statements are relatively standardized across industries.

Performing arts organizations are an example of other private not-for-profit organizations.

A Statement of Functional Expenses,which is required for voluntary health and welfare organizations,presents a matrix of expenses classified by function and by object or natural classification.

The entry to record the expiration of program restrictions includes which of the following?

A private not-for-profit reports expenses in either the unrestricted net asset class or restricted net asset class,as appropriate.

Which of the following is not correct with respect collections held by private not-for-profit organizations?

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Which of the following would not be an example of a voluntary health and welfare organization?

Under FASB Statement 117,reclassifications of net assets are not made:

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.16,Appendix D?

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

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

The three classes of net assets reported for a private not-for-profit organization include all of the following except:

Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides: Not-for-Profit Organizations and Health Care Organizations.

According to FASB Statement No.16,Appendix D,how are not-for-profit organizations distinguished from a business?

According to FASB,which of the following is not something that distinguishes a private not-for-profit organization from a business?

What are the financial statements required for all nongovernmental,not-for-profit organizations?

A Statement of Functional Expenses is required for public colleges and universities.

The Statement of Functional Expenses:

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