F9 - Not-for-Profit Organizations

Question 1

Cash contributions and unconditional pledges are recognized as contribution revenue:

Answer 1

In the year in which the cash or pledge is received.

Question 2

Not-for-profit corporations are required to produce the following statements:

Answer 2

Statement of Financial Position
Statement of Activities
Statement of Cash Flows

Question 3

Restricted donations are released from restriction

Answer 3

when conditions or eligibility requirements have been satisfied.

Question 4

Donated property to a not-for-profit organization, is recorded at:

Answer 4

Its fair market value, and is recognized as support.

Question 5

Exchange transactions are:

Answer 5

Reciprocal transfers in which each party receives and sacrifices something of approximately equal value

Question 6

Proceeds from the sale of long lived assets or insurance proceeds associated with the loss of long lived assets should be included in:

Answer 6

Investing activities in the statement of cash flows.

Question 7

A not-for-profit organization needs to report its expenses in the statement of activities by their:

Answer 7

Functional classification (program classification, supporting activities, fund-raising, etc). This method helps donors and others in assessing an organization’s service efforts.

Question 8

The net assets balance of a not-for-profit equals

Answer 8

Assets minus liabilities (including deferred revenues).