74%

Question 1

when should a component unit be presented discretely?

Answer 1

when it’s an separately elected legal entity that’s financially independent

Question 2

which of the items will impact earnings per share?

Answer 2

anything that impacts net income

Question 3

what is not an exit or disposal cost?

Answer 3

cost to relocate employees

Question 4

given:
quoted market price
transaction costs
net quoted market price

what is the fair value of a stock?

Answer 4

quoted market price

Question 5

contributed works of art or historical treasures do not need to be recorded if:

Answer 5

not for investment or financial gain

preserved by organization

proceeds are reinvested or used to support care of current collections

Question 6

when there’s a stock dividend, what should you think?

Answer 6

is it a small or large stock dividend?

Question 7

are interim reports audited?

Answer 7

no

Question 8

what are program services?

Answer 8

activities which the organization has chartered

Question 9

what are support services?

Answer 9

fundraising
administration
membership development

Question 10

how do you find NCI?

Answer 10

beg NCI = FV of subsidiary * NCI %
+ NCI % of net income
- NCI % of dividends
end NCI

Question 11

Potter is hosting a fundraising event, which is part of their mission. in exchange for a $550 donation, donors receive a $50 flower vase. Potter will recognize contribution of :

Answer 11

$550 contribution revenue
$50 fundraising expense

Question 12

what are the valuation techniques when measuring the fair value of an asset or liability?

Answer 12

income (future cash flows)
cost (replacement cost)
market (market value)

Question 13

what is the journal entry for a DTA valuation allowance?

Answer 13

current tax expense
(DTA valuation allowance)

Question 14

when accounting for a gain or loss from discontinued operations, what is the last step before recording the amount?

Answer 14

take out tax

Question 15

add or subtract fixed assets when reconciling a fund balance?

Answer 15

add

Question 16

add or subtract debt proceeds when reconciling a fund balance?

Answer 16

subtract

Question 17

how are patents amortized?

Answer 17

lesser of legal life v economic life

Question 18

what should you think when you see a subsequent event question?

Answer 18

did it exist at balance sheet date?

yes-accrue and disclose
no-disclose

Question 19

what is the current maturity for 12/31/Year 2 lease?

Answer 19

12/31/Year 3 principal portion

Question 20

recipient journal entry when they have

variance power
no variance power

Answer 20

asset
(contribution revenue)

asset
(refundable advance)

Question 21

beneficiary journal entry when they’re

not financially interrelated
financially interrelated

Answer 21

beneficial interest
(contribution revenue)

interest in recipient’s net assets
(change in interest in recipient’s net assets)

Question 22

how is interest received recorded in a non-interest bearing note receivable?

Answer 22

note receivable
interest income

Question 23

in an enterpise fund, transfers made to other funds is classified as

Answer 23

non-capital financing activities

Question 24

in an enterprise fund, interest and dividends received are classified under

Answer 24

investing activities

Question 25

for an NFP, restricted promises are classified as

Answer 25

financing activities