F8/M3/M4 Flashcards
NFP
No fund accounting
Financial statements (Full accrual)
Statement of financial position
Statement of activities
Statement of Cash flows
Statement of functional expenses
Statement of Financial Position
Assets
Liabilities
Net Assets
Net Asset (PUT)
Unrestricted Net Assets
- Not permanently or temporarily restricted
- Internal board designated funds
- Finance ongoing program expenses
Temporarily Restricted
- Donor restricted
- Time passage or actions of organization
- Money market account
Permanently Restricted
- Savings account
Reclassifications of restricted assets are reported on the Statement of Activities
True;
Donor imposed restrictions that are met in the same period received can be reported as unrestricted support
Program services
Activities for which the organization is chartered
Support services
- Fundraising
- Administrative expenses
- Membership development
Statement of Activities is broken out by PUT
True;
Expenses are classified by Function Classification (Program and Support)
“Changes in Net Assets” on Statement of Activities = Net Income
True
Statement of Cash Flows
- Exclude donor-restricted securities
- INDIRECT METHOD
Operating Activities
- Receipt of unrestricted net assets
- Board designated funds
- **Subtract out funds received from
Permanent Endowments
Investing Activities
- Sale/purchase Works of Art
- Anything to do with equipment
Financing Activities
- Borrowing money
- Proceeds from Restricted Net Assets
(Temporary or Permanent)
Start with “Changes in Net Assets” using the Indirect method for the “Statement of Activities”
True
Statement of Functional Expenses
- Mandatory for VHWO
- Encourages for all others
Functional classifications
- Program Services
- Support Services
- Fundraising Expenses
- Administrative Expenses
- Membership Development
