F8 - M3 - Not-for-Profit Financial Reporting: Part 1 Flashcards
Not-for-profit entities frequently depend significantly on _____ or _______
donations or contributions.
Non-for-profit entites include: (4)
1) health care organizations (e.g., hospitals), 2) educational institutions (e.g., universities), 3) voluntary health and welfare organizations (e.g., United Way), and 4) other nongovernmental, not-for- profit entities (e.g., museums).
All Non-for-profit entity’s use _______ basis of accounting.
full accrual basis of accounting.
for Non-for profit entity’s, The accounting rules for these entities come from the _________________
FASB Accounting Standards Codification® (ASC).
Non-for profit entities have required financial statements include (3)
1) the statement of financial position, 2) statement of activities,3) statement of cash flows.
All not-for-profit organizations must report information about the relationships between _______ classifications and ________ classifications of expenses in one location
functional; natural
Not-for-profits may report the functional and natural classification : (3)
(1) on the face of the statement of activities, as a schedule (2) in the notes to the financial statements, or in (3) a separate financial statement (no specific title provided by the FASB).
Net assets are composed of two elements (2)
Net assets without donor restrictions, Net assets with donor restrictions
Net assets with no external restrictions are called ___________
Net Assets without donor restrictions
external restrictions either in perpetuity or which can be satisfied with time or use requirements are net assets called ______________
Net Assets with donor restrictions
internal board-designated funds are classified as ________________
net assets without donor restrictions.
When a donor-imposed restriction is satisfied, the amount ceases to be classified as net assets with
donor restrictions and is reclassified to ____________________
net assets without donor restrictions.
There are three required elements required in the statement of activities:
Change in total net assets
• Change in net assets without donor restrictions
• Change in net assets with donor restrictions
_________ represent the major activities of the organization performed in furtherance of the organization’s mission.
Program services
__________ represent administration-type functions within the organization.
Support services
_________ need to be allocated between program and support services using any reasonable means.
Combined costs
Healthcare entities have only two categories of funds: (1) the ______ and (2) the ______________
general funds and donor-restricted funds
Outstanding _______ cannot be reported as liabilities. Any encumbrance outstanding should be reported as part of the _____________.
encumbrances; equity section of the balance sheet
