Basics Flashcards
Accounting organization that has jurisdiction over NFP & health care entities
FASB
NFPs distinguish between expenses & expenditures. T/F
False
Three primary financial statements for NFPs
Statement of Financial Position; Statement of Activities; Statement of Cash Flows
Three categories of net assets
Unrestricted; permanently restricted; temporarily restricted
Statement of Financial Position Required Subtotals
Total assets; total liabilities; total net assets; total unrestricted net assets; total temporarily restricted assets; total permanently restricted assets
NFP must make two journal entries whenever it spends restricted resources. T/F
True
If restriction associated with contribution is met during the same period the contribution is made, then
contribution can be recorded as unrestricted upon receipt.
Contribution transactions must be distinguished from exchange transactions. T/F
True
Exchange transaction revenue is always restricted. T/F
False, unrestricted
Pass through donations are recognized as revenue. T/F
False, not recognized as revenue
Statement of Changes in Stockholders’ Equity NFP equivalent
Statement of Changes in Net Assets (if appropriate)
Three Criteria of a Fundraising Activity
1)Purpose - calls for specific action; 2) Audience - need for program to advance action; 3) Content - how to achieve mission
Allowable Means of Cost Allocation for NFPs
Physical units; relative direct costs; stand alone costs
Management and General Activities
Activities that are not identifiable with a single program, fundraising activity, or membership development activitiy
_____________ are defined as “all activities of a NFP entity other than program services.
Support services
