Deck 26: Not-For-Profit Organizations: Introduction and Private Npos

Question 1

Contributions are ______________________transfers of cash or other assets.

Answer 1

unconditional

Question 2

A transfer in which value is not received or given in exchange is a(n) ______________________________transfer.

Answer 2

nonreciprocal

Question 3

A promise to give is a contribution if the promise is __________________________.

Answer 3

unconditional

Question 4

In general, contributions are recognized ________________________________.

Question 5

A(n) _______________________ promise to give is not a contribution.

Question 6

Contributions of monetary and nonmonetary assets are valued at their __________________.

Question 7

Three ways to determine the fair value of a contribution are (a) ________________________________________________, (b) _________________________________________, and (c) ___________________________________________.

Question 8

Contributed services are recognized if they (a) create or enhance __________________________________________ or (b) require _____________________________________.

Question 9

In general, contributed services are measured at the __________________________ of the services received. However, recognizable contributed services that create or enhance nonfinancial assets may be recognized instead at the fair value of the ________________________________.

Question 10

Contributed works of art, historical treasures, and similar assets are called __________________________________.

Question 11

Contributed works of art, historical treasures, and similar assets may not be _____________________________________________ capitalized.

Question 12

The three categories in which contributions are to be reported are ____________________________________, _________________________, and _________________________.

Question 13

Contributions that create ______________ are permanently restricted contributions.

Question 14

Term endowments would be classified as _______________________ contributions.

Question 15

Promises with future payment dates would usually be classified as _____________________________________ contributions.

Question 16

Contributions of capital assets would usually be classified as either _________________________________ or __________________________________________, depending on __________________________________ or the nonprofit organization's (NPO) __________________________ in the absence of ____________________________.

Question 17

Restrictions on long-lived assets classified as temporarily restricted net assets ________________ over the life of the assets.

Question 18

Under FAS 117, private nonprofit organizations (NPOs) must issue financial statements that focus on the nonprofit organization as a(n) ____________________.

Question 19

Under FAS 117, private nonprofit organizations must classify their net assets (equity) based on (a) whether _______________________________________ exist and (b) the type of _________________________________________.

Question 20

Under FAS 117, private nonprofit organizations must show in their statement of financial position amounts for the NPO's ____________________________________, ________________________________, and __________________________________.

Question 21

Under FAS 117, private nonprofit organizations must show three classes of net assets (equity) in their statement of financial position: (a) ______________________________, (b) ______________________________, and (c) __________________________.

Question 22

The unrestricted net asset category in the statement of financial position could be subdivided between (a) ________________________________________ net assets and (b) ______________________ net assets.

Question 23

Under FAS 117, revenues, gains, and other support must be reported by __________________________________ in the statement of activities.

Question 24

Under FAS 117, all expenses are shown in the ___________________ category in the statement of activities.

Question 25

Under FAS 117, expirations of restrictions are reported _______________________________________________ in the statement of activities.

Question 26

Voluntary health and welfare organizations must also report expenses by __________________classification in a separate financial statement using a(n) __________________ format.

Question 27

In general, revenues and expenses are reported at their ___________ amounts.

Question 28

The statement of activities may be in ___________________format or in ____________________ format.

Question 29

For each category of net assets, the statement of activities must show for the nonprofit organization as a whole the amount of ______________________________.

Question 30

The statement of cash flows may be prepared using the ________________ method (the preferred method) or the ______________ method.

Question 31

FAS 117 ________the use of fund accounting for internal record-keeping purposes.

Question 32

Under FAS 116, the definition of contributions does not include conditional promises to give.

Question 33

Under FAS 116, the definition of contributions includes both reciprocal and nonreciprocal transfers.

Question 34

Under FAS 116, an unconditional promise to give must be in writing to qualify as a recognizable contribution.

Question 35

Under FAS 116, unconditional promises to give are recognized in the financial statements when received-not when collected.

Question 36

Under FAS 116, a communication that is unclear as to whether it constitutes an unconditional promise to give is deemed an unconditional promise if it is legally enforceable.

Question 37

Under FAS 116, conditional promises to give are considered unconditional if the probability that the specified future event will occur is remote.

Question 38

Under FAS 116, assets that have been received and that can be retained and used only if a conditional future event occurs are classified in the asset section as Refundable Advances.

Question 39

Under FAS 116, contributions that create endowments are always reported in the statement of activities-never as direct adjustments to equity.

Question 40

Under FAS 116, contributions are recognized when received, with limited exceptions.

Question 41

Under FAS 116, contributions received are measured at the fair value.

Question 42

Under FAS 116, contributions received must be measured at the present value of estimated future cash flows.

Question 43

Under FAS 116, the interest element in a present-value measurement is subsequently recognized as contribution income-not interest income.

Question 44

Under FAS 116, contributed services are recognized only if they create or enhance nonfinancial assets.

Question 45

Under FAS 116, the fair value of contributed services received but not recognized in the financial statements must be disclosed.

Question 46

Under FAS 116, repairs made to a building on a volunteer basis by a plumber would not be recognized in the financial statements.

Question 47

Under FAS 116, contributed services are valued using the minimum wage.

Question 48

Under FAS 116, contributed services that create or enhance a nonfinancial asset must be recorded at the fair value of the asset created or enhanced.

Question 49

Under FAS 116, collection items need not be capitalized under certain circumstances.

Question 50

Under FAS 116, collection items may be capitalized retroactively, prospectively, or selectively.

Question 51

Under FAS 116, contributions that create endowments are classified as increasing permanently restricted net assets.

Question 52

Under FAS 116, contributions that create term endowments are classified as increasing permanently restricted net assets.

Question 53

Under FAS 116, income earned on endowments (other than term endowments) is reported as increasing permanently restricted net assets.

Question 54

Under FAS 116, contributions that create term endowments are classified as increasing temporarily restricted net assets.

Question 55

Under FAS 116, contributions with future payment dates beyond one year are not recognized in the financial statements.

Question 56

Under FAS 116, contributions with future payment dates usually would be classified as increasing temporarily restricted net assets.

Question 57

Under FAS 116, contributions of capital assets are classified as increasing unrestricted net assets when the assets are placed in service.

Question 58

Under FAS 116, contributions of capital assets are classified as increasing unrestricted net assets when the assets are placed in service only in the absence of donor-imposed restrictions.

Question 59

Under FAS 116, an implied time restriction on contributed capital assets is assumed to exist in the absence of donor-imposed restrictions.

Question 60

Under FAS 116, a nonprofit organization must establish an accounting policy as to whether implied time restrictions exist on contributed capital assets only if no donor-imposed restrictions exist.

Question 61

Under FAS 116, a purpose restriction is deemed to have expired when an expense has been incurred for that purpose.

Question 62

Under FAS 117, private nonprofit organizations must present financial statements that focus on the nonprofit organization as a whole.

Question 63

Under FAS 117, the statement of financial position must show total assets, total liabilities, and total net assets (equity).

Question 64

Under FAS 117, the statement of financial position must show total amounts for each classification of net assets.

Question 65

Under FAS 117, the statement of financial position may be in either the classified format (current/noncurrent categories) or the unclassified format.

Question 66

Under FAS 117, "board-restricted" net assets must be shown separately in the statement of financial position.

Question 67

Under FAS 117, an intermediate measure of operations cannot be shown in the statement of activities.

Question 68

Under FAS 117, the "layered" format is allowed in the statement of activities.

Question 69

Under FAS 117, expirations of restrictions must be reported separately in the statement of activities.

Question 70

Under FAS 117, all expenses are reported in the unrestricted category-even expenses incurred in satisfying donor-imposed restrictions.

Question 71

Under FAS 117, only voluntary health and welfare organizations must show expenses by function in the statement of activities.

Question 72

Under FAS 117, revenues from special events that are ongoing and major activities are reported net of related expenses.

Question 73

Under FAS 117, fund accounting for internal record-keeping purposes is specifically discouraged.

Question 74

_____ Under FAS 116, donor-restricted contributions are recognized in the financial statements

A) When collected.
B) When received.
C) When the restrictions expire.
D) When the conditions stipulated by the donor are fulfilled.
E) None of the above.

Question 75

_____ Under FAS 116, which of the following contributions are recognized in the statement of activities?

A) Contributions of services that enhance financial assets.
B) Contributions of services that enhance nonfinancial assets.
C) Contributions of services that enhance either financial assets or nonfinancial assets.
D) Contributions of services, regardless of whether they enhance assets or who performs them.
E) None of the above.

Question 76

_____ Under FAS 116, which of the following contributions are not recognized in the statement of activities?

A) Contributions that create endowments.
B) Contributions that create temporary endowments.
C) Contributions of capital assets.
D) Contributions of services that enhance nonfinancial assets.
E) None of the above.

Question 77

_____ Under FAS 116, which of the following contributions are credited directly to the entity's net assets (equity) section of the balance sheet when received?

A) Contributions of capital assets.
B) Contributions that create endowments (permanent).
C) Contributions that create temporary endowments.
D) Contributions of services that enhance nonfinancial assets.
E) None of the above.

Question 78

_____ Under FAS 116, which of the following contributions are credited to a Deferred Revenues account until spending occurs?

A) Contributions restricted as to purpose.
B) Contributions restricted as to time period.
C) Contributions restricted as to both purpose and time period.
D) Contributions to be spent on acquiring capital assets.
E) None of the above.

Question 79

_____ Under FAS 116, the fair value of a contribution cannot be determined by using

A) Market quotations.
B) Appraisals.
C) Present-value calculations of expected future cash flows.
D) Hours donated multiplied by the standard billing rate per hour.
E) None of the above.

Question 80

_____ Under FAS 116, which of the following contributed services are not recognized in the financial statements?

A) Contributed services that enhance nonfinancial assets.
B) Contributed services that create nonfinancial assets.
C) Contributed services that are performed by persons having specialized skills.
D) Contributed services performed by persons not having specialized skills.
E) None of the above.