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

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.

Country clubs and labor unions are not included in the category "other not-for-profit" organizations because they provide benefit to their members only and not to the general public.

Private not-for-profit organizations record depreciation expense.

Private not-for-profits use record encumbrances to maintain budgetary control.

All not-for-profits must follow FASB standards so not-for-profit ?financial statements are similar across industries.

The AICPA Not-for-Profit Organizations Not-for-Profit Guide) applies only to nongovernmental not-for-profit organizations.

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

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

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

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

How does a for-profit organization record contributions made to a private not-for-profit organization?

What financial ratio is most commonly used to evaluate charitable organizations?

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

The Robbins Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $35,000 which cost $140,000 and had a book value of $45,000 at the time of sale. In recording the sale, the foundation should:

A donor made a gift of cash to a private not-for-profit organization in 2017 with an expressed purpose restriction. All the funds were expended in 2017. The organization must:

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?

In 2017, 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?

Supporting activities as classified in the Statement of Activities, normally include

With respect to the Statement of Cash Flows for a private not-for-profit organization, donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

If fixed assets are recorded as temporarily restricted assets, then a reclassification is made each accounting period to unrestricted resources in the amount equal to the depreciation or an allocation based on the time the asset is restricted, whichever is shorter.