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FAR- My Notecards > F9: Not-For-Profit Organizations > Flashcards

F9: Not-For-Profit Organizations Flashcards

1
Q

NFP uses ____, not GASB

A

FASB

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2
Q

NFP are divided into 4 separate categories:

A

1- Health care organizations
2- Educational institutions
3- Voluntary Health and Welfare organizations
4- Other Private (not governmental) NFP organizations

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3
Q

Who are some users of NFP statements?

A

-donors, members, creditors

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4
Q

GAAP requires that NFP organizations report using what basis of accounting?

A

Full accrual basis of accounting

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5
Q

What is the overall emphasis for NFP statements?

A

Basic info for the organization as a whole

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6
Q

4 required financial statements for NFP

A

1- Statement of Financial Position
2- Statement of Activities
3- Statement of Cash Flows
4- Statement of Functional Expenses

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7
Q

What 3 components make up the Statement of Financial Position?

A

(Think B/S)
1- assets
2- liabilities
3- net assets (equity)

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8
Q

Assets & liabilities for NFP are classified as:

A

Current or noncurrent in order of maturity

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9
Q

3 components of Net Assets (equity) are:

A

“PUT”
1- Unrestricted net assets
2- Temporarily restricted net assets
3- Permanently restricted net assets

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10
Q

Internal board-designated funds are considered what?

A

Unrestricted net assets

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11
Q

Unrestricted net assets definition

A

Assets that aren’t permanently or temporarily restricted

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12
Q

Temporarily restricted net assets definition

A

Donor-imposed stipulations that expire either through passage of time or can be fulfilled

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13
Q

Permanently restricted net assets definition

A

Use is limited by donor-imposed stipulations that neither expire nor can be fulfilled

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14
Q

What four elements are presented in the Statement of Activities?

A

(Think I/S)

  • change in total net assets
  • change in PUT net assets
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15
Q

When are donor-imposed contributions recorded as restricted revenue?

A

Period in which received

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16
Q

When a donor restriction is satisfied, what happens?

A

A reclassification is reported

17
Q

How are expenses reported in the Statement of Activities?

A

As decreases in unrestricted net assets

18
Q

Where are expenses shown?

A

Either in the face of the statement or in the notes

19
Q

3 Classifications of Expenses

A

1- Program Services
2- Support Services
3- Combined Costs

20
Q

Program Services definition

A

Activities of the organization

21
Q

Support Services definition

A

Everything not classified as a program service

22
Q

Combined Costs definition

A

NFPs that combine fund raising efforts with educational services

23
Q

Is a Statement of Cash Flows required for all NFP organizations?

A

YES

24
Q

What format is allowed for the Statement of Cash Flows

A

Either the direct method or the indirect method can be used

25
Q

What 4 sections are shown in the Statement of Cash Flows?

A

1- Operating Activities
2- Financing Activities
3- Investing Activities
4- Cash & Cash Equivalents

26
Q

Agency transactions are reported under what section of the Statement of Cash Flows?

A

Operating Activities

27
Q

Cash transactions related to borrowing are reported under what section of the Statement of Cash Flows?

A

Financing Activities

28
Q

Cash transactions related to certain restricted contributions are reported under what section of the Statement of Cash Flows?

A

Financing Activities

29
Q

Donor-imposed restrictions limiting use to long-term purposes are reported under what section of the Statement of Cash Flows?

A

Financing Activities

30
Q

Board designated revenues are reported under what section of the Statement of Cash Flows?

A

Operating Activities

31
Q

Proceeds from the sale of works of art or purchases of works of art are reported under what section of the Statement of Cash Flows?

A

Investing Activities

32
Q

Investment in equipment are reported under what section of the Statement of Cash Flows?

A

Investing Activities

33
Q

Proceeds from the sale of assets that were restricted are reported under what section of the Statement of Cash Flows?

A

Investing Activities

34
Q

Who is required to present a Statement of Functional Expenses?

A

Voluntary health and welfare organizations

35
Q

Who is NOT required to present a Statement of Functional Expenses?

A

All other NFP organizations other than voluntary health and welfare

36
Q

4 Classifications of Expenses on the Statement of Functional Expenses

A

1- Program Support Expenses
2- Fund-raising Expenses
3- Management and General Costs
4- Multiple Cost Items

FAR- My Notecards (34 decks)

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