37

Question 1

what is the treatment of CF’s from a FA acq’s with a down pmt and financing for the remainder?

Answer 1

• down pmt = CFI
• financing = CFF “P” pmt
• remaining amt is considered “non-cash I and F act” disclosed sep’ly

..generally, the amt reported for this activity would be the non-cash portion

Question 2

in CF’s, if used equip. is sold at a gain, amt shown as CFI act’s = CV + what?

Answer 2

plus the gain/proceeds from sale

Question 3

what are the req’d FS’s for NFP’s?

Answer 3

• statement of fin. pos. (BS)
  ..includes A, L, and NA’s

- statement of act's (I/S)
..has 3 req'd elements:
(1) change in total NA's
(2) change in NA's w/o donor
(3) change in NA's w/ donor

• statement of CF’s
• notes to FS’s

Question 4

how are exp’s reported in NFP’s? (3 ways)

Answer 4

*they are reported by nature and function

1) face of statement of act’s
(2) sched. in notes
(3) separate FS
(no specific title from FASB

Question 5

what items are included in NA’s?

Answer 5

*w/o donor restriction:
- finances gen. op’s and board desig’d funds
(quasi endowments)

• w/ donor restriction:
• specific ext. imposed limitations made by donor

Question 6

are contr’s w/ donor-imposed restrictions recog’d as donor-restricted supp?

Answer 6

yes

Question 7

what is the JE for use of program resources?

Answer 7

Dr: program exp
Cr: program rev

Question 8

what are program svc’s (exp’s)?

Answer 8

• universities (edu + research)
• hospitals (patient care +edu)
• union (labor nego. + train)
• day care (child care)

Question 9

what are supp svc’s?

Answer 9

• fundraising
• mgt + gen (admin exp)
• membership dvp.

Question 10

what is included in the notes for exp. class’n for NFP’s?

Answer 10

2 columns of program act’s and supp act’s w/ totals agreeing to statement of act’s

Question 11

what items are included in fundraising exp?

in supp act’s

Answer 11

items that induce potential donors to contribute to the entity
(cost of maintaining donor list, soliciting svc’s)

Question 12

what are membership act’s?

in supp act’s

Answer 12

similar to marketing act’s

soliciting prospective members, gen. and admin exp

Question 13

what is req’d for reporting exp’s by all NFP’s?

Answer 13

functional class’n in statement of act’s and natural class’n by function in notes

Question 14

are exp’s reported as decreases in NA’s w/o donor restrictions?

Answer 14

yes

Question 15

are grants to other org’s and DE included in total exp’s?

Answer 15

yes, they both are

Question 16

can donor-imposed restrictions met in the same period they are rec’d be recorded as support w/o donor restrictions?

Answer 16

only if the org. discloses and consistently applies this AP

Question 17

is residual interest the approp. characterization of NA’s for NFP’s?

Answer 17

yes, it is

Question 18

in NFP statement of CF’s, does using the direct method req. reconc. of CFO?

Answer 18

no, it does not

Question 19

what are op. act’s in in CF NFP?

Answer 19

• receipt/pmt for settlement of lawsuits
• ins. proceeds from settlements
• refunds from suppliers and refunds to cust’s
• charitable contr’s and distr’s

Question 20

are contr’s of board desig’d funds for constr/purch of LT asset an op. act?

Answer 20

yes it does