2.01 NOT-FOR-PROFIT OVERVIEW

Question 1

Contribution Revenue

Answer 1

FV of amount received - FV of resources given up

Question 2

Contributions of property are recorded at

Answer 2

FV

Question 3

Contributions of services are recognized at FV if

Answer 3

1. non-financial asset is created or enhanced
2. requires person with specialized skills in another field (accountant, lawyer, doctor)

Question 4

Contributions are conditional when

Answer 4

1. there is a barrier to overcome
2. donor has right to return assets

Question 5

Revenue from conditional contributions is recognized

Answer 5

when the future condition is met

Question 6

Conditional Pledges

Answer 6

PROMISES that depend on a specific event occurring in the future; not recognized until uncertain event has occurred

Question 7

Agent/Trustee

Answer 7

acts as an intermediary for collecting donations

Question 8

Equity/Debt Investments are

Answer 8

recognized at the FV on donation date

Question 9

Type of endowment that cannot be invested

Answer 9

Permanent Endowment

Question 10

What is excluded from Gross Revenue for Hospitals

Answer 10

Charity Care

Question 11

What is excluded from Gross Revenue for Colleges

Answer 11

Tuition Refunds

Question 12

Net Patient Service Revenue

Answer 12

Gross Patient Service Revenue - Discounts - Contractual Adj - Implicit Price Concessions

Question 13

Net Tuition Revenue

Answer 13

Gross Tuition Revenue - Scholarship Allowances - Uncollectible Amounts

Question 14

Do not recognize art/artifacts/antiques if

Answer 14

the npo uses the donated item for display or research purposes only
AND
the organization cares for it themselves
AND
if sold the proceeds are either reinvested in other collectible items OR used for the direct care of existing collections

Question 15

Statement of Functional Expenses can be presented as

Answer 15

a separate statement, on statement of activities, or in the notes

Question 15

Pledges are recognized if they are

Answer 15

unconditional

Question 16

Variance Power is

Answer 16

the unilateral power to redirect the transferred assets to another beneficiary (they can override the donor’s instructions without approval)

Question 17

A conditional grant is recorded as a

Answer 17

refundable advance

Question 18

when the reporting entity acts as an agent/trustee a _____ is recorded

Answer 18

liability

Question 19

a contribution from a resource provider is reported as contribution revenue if

Answer 19

the recipient organization is granted variance power by the resource provider or the recipient organization and the beneficiary are financially interrelated organizations

Question 20

an arrangement where a donor makes an initial gift to a trust or directly to the NPO, in which the NPO has a beneficial interest but is not the sole beneficiary

Answer 20

Split-Interest Agreement

Question 20

exchange revenue

Answer 20

fv of resources received - fv of resources surrendered