ASNPO

Question 1

Financial Statements of an NPO

Answer 1

Statement of Financial Position
Statement Of Operations (Excess revenue, not net income)
Statement of Changes in Net Assets or Fund Balances (similar to statement of retained earnings)
Statement of Cash Flows

Question 2

Fund Accounting: Common Fund Types

Answer 2

General Fund
Restricted Funds
Capital Asset Funds
Endowment Funds

Question 3

Contribution Revenue Accounting Options

Answer 3

Restricted Fund Method (fund accounting required)
Deferral Method (fund accounting optional)

Question 4

Types of Contributions

Answer 4

UNRESTRICTED CONTRIBUTIONS: no restrictions on use
RESTRICTED CONTRIBUTIONS: externally imposed conditions on when funds can be used
ENDOWMENT CONTRIBUTIONS: Principal must be maintained permanently, interest can be unrestricted or restricted.

Question 5

Revenue Recognition - Deferral Method

Answer 5

UNRESTRICTED CONTRIBUTIONS
- reasonable assurance of collection
- amount to be received can be reasonably estimated
RESTRICTED CONTRIBUTIONS
- where related expense has occurred are recognized in same period
- where related expense has not occurred are recorded as deferred contributions (liability)
CAPITAL ASSET CONTRIBUTIONS
- when capital asset (or cash) contributed, debit asset and credit deferred contribution
- for amortization, debt deferred contribution and credit contribution revenue (along with amortization JE)
ENDOWMENT CONTRIBUTIONS
- recorded as direct increase to net assets (not revenue) / DR Cash CR Net Assets

Question 6

Disclosures - Deferral Method

Answer 6

• restricted deferred contributions

- restricted net assets from permanent endowments