Chapter 12

Question 0

conditional promise

Answer 0

promise to donate an asset or provide a service in the future that is contingent on a specified future event

Question 1

annuity

Answer 1

series of equal payments over a specified number of equal time periods

Question 2

federated organization

Answer 2

group of charitable organizations established to provide common administrative, fundraising, and management services to its members

Question 3

pledges

Answer 3

promise by a donor to make a donation of cash or assets in the future

Question 4

statement of activities

Answer 4

Operating statement that consolidates separately the revenues, expenses and other items of a government’s governmental and business-activities

Question 5

term endowment

Answer 5

endowment in which principal may be expended after a specified number of years

Question 6

unconditional promises

Answer 6

pledge or promise to give an asset or provide a service in the future that is not dependent on a certain event occurring.

Question 7

variance power

Answer 7

right of a not-for-profit organization to unilaterally redirect contributed assets to a beneficiary other than that specified by the donor.

Question 8

Not for profit characteristics

Answer 8

was not created by a gov. but by individuals
des not have power to levy taxes
may not have the power to levy tax-exempt debt
FASB is the authoritative standards setting body for reporting

Question 9

Accounting requirements of Not-for profit

Answer 9

Tax/regulatory compliance (tax exempt status, reporting tax forms, payroll)
Grant compliance
Transparency

Question 10

FASB #93

Answer 10

Depreciation

Question 11

FASB#95

Answer 11

Statement of Cash flows

Question 12

FASB # 116

Answer 12

Contributions

Question 13

FASB #117

Answer 13

Financial statement display

Question 14

FASB #124

Answer 14

Investments

Question 15

FASB#136

Answer 15

Transfers of assets

Question 16

FASB#164

Answer 16

NFP entities; mergers & acquisitons

Question 17

Required Statements Not for Profit

Answer 17

Statement of financial position
statement of activities
staement of cash flows
$of each 3 classes of net assets in statement of financial position
$ of change in each of the 3 classes of net assets in statemetn of activites

Question 18

3 classes of net assets

Answer 18

permanently restricted,
temporarily restricted
unrestricted

Question 19

classification of net assets is based on

Answer 19

existence or absence of donor-imposed restrictions

Question 20

FASB requires equity investments and all debt securities at

Answer 20

Fair Value

Question 21

When net assets are released from restrictions (as restricitons are met)

Answer 21

Decrease temp restricted net assets and increase unrestricted net assets

Question 22

Sub classifications of assets

Answer 22

operating/nonoperating
expendable/nonexpendable
earned/unearned
recurring/nonrecurring

Question 23

Revenues in a Not for profit

Answer 23

should be reproted as increases in one of the 3 categories of net assets

Question 24

Not for profit Expenses

Answer 24

accrual accounting
all should be reproted as decreases in unrestricted net assets
should be reproted by functional categories
record depr. exp. for all capital assets, except collections

Question 25

Not for Profit investment gains/losses

Answer 25

should be included separately from rev$exp
Report realized and unrealized
report income and gains/losses as change in unrestricted net asset

Question 26

contributions made, including promises to give are

Answer 26

recognized as expenses in the period made at fair values

Question 27

conditional promises to give are recognized

Answer 27

when they become unconditional

Question 28

Not for profit contributions received increase

Answer 28

permanently restricted net assets
temporarily restricted net assets
unrestricted net assets

Question 29

Not for profit recognize the experateion of donor-imposed restrictions

Answer 29

in the period they expire

Question 30

Main means of support for Not for profit

Answer 30

contributions

Question 31

not for profit pledges are enforceable when

Answer 31

the organization has relied on the pledgea nd therby incurred costs

Question 32

Not for profits should recognized contributed services

Answer 32

only if they are of a professional nature and would be requied by the NFP if not donated

Question 33

NFP are not required to

Answer 33

recognize and capitalize works of are