Day 18

Question 1

In order for NFP organizations to be financially interrelated they must:

Answer 1

They must share BOTH:
1. One organization must be able to influence the operating and financial decisions
AND
2. Have an ongoing economic interest in the net assets

MCQ-01230

Question 2

ABC issued 500,000 of common stock. They declared a 30% stock dividend. The market value was $50 per share and the part value was $10. How much did stockholders equity decrease?

Answer 2

the net effect on SH Equity is ZERO

JE:
DR - Retained Earnings $1,500,000
CR - Common Stock (par value) $1,500,000

MCQ-04681

Question 3

When can a company capitalize interest?

Answer 3

1. Waiting to obtain permits for the construction of a bldg
2. Capitalize interest only during construction period

MCQ-01540

Question 4

When should the gain or loss on the sale of equipment be recognized?

Answer 4

In the period it occurred

DO NOT allocate over time

MCQ-00242

Question 5

For NFP, what are support activities:

Answer 5

• Fundraising
• Admin Services
• Membership Development expenses

MCQ-05610

Question 6

Define: Comprehensive Income

Answer 6

Is the change in equity from a business during a period from transactions and other events from Non-Owner Sources

MCQ-00101

Question 7

On the Form 10-Q which BS is presented?

Answer 7

The end of preceding fiscal year (PY BS)

AND

CY Quarter end BS

MCQ-06619

Question 8

Net Realizable Value

Answer 8

Selling costs - Cost to Complete = NRV

MCQ-06046