FAR 10A

Question 1

Nongovernmental not-for profit organizations that wish to follow generally accepted accounting principles in the preparation of their financial statements should follow

Answer 1

FASB standards

Question 2

The four broad categories of not-for-profit entities:

Answer 2

(1) hospitals and other healthcare entities (2) colleges and universities (3) voluntary health and welfare organizations (4) other not-for-profit organizations

Question 3

How should a nongovernmental not-for-profit organization classify gains and losses on investments purchased with permanently restricted assets?

Answer 3

Unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in unrestricted net assets.

Question 4

___________________ for a hospital results from providing the primary services of the hospital.

Answer 4

Operating Revenue

Question 5

Both gifts and unrestricted bequests should be credited to ____________________.

Answer 5

Nonoperating Revenue.

Question 6

GASB Concepts Statement No. 1 lists the following four financial reporting implications associated with the legally adopted annual budget:

Answer 6

(1) expression of public policy (2) expression of financial intent (3) form of control (4) it may provide a basis for evaluating performance

Question 7

____________ measures indicate the accomplishments or results that occur because of the services provided.

Answer 7

Outcome

Question 8

An ______________ is commonly used in situations where user fees are the primarily source of revenue and the fee charged is based on an amount sufficient to cover the costs of operations.

Answer 8

Enterprise Fund

Question 9

Wastewater and sewerage services are usually provided on a service-fee basis; therefore, they are accounted for in an enterprise fund - one of the two types of ________.

Answer 9

proprietary funds

Question 10

What local government fund uses the accrual basis of accounting?

Answer 10

Enterprise

Question 11

The Appropriations Control account should have been ________ when the budget was adopted, and it should have been ________ when the budgetary accounts were closed at the end of the year.

Answer 11

credited debited

Question 12

Assuming no outstanding encumbrances at year’s end, closing entries for which of the following situations would increase the unassigned fund balance at year’s end?

Answer 12

Appropriations exceed actual expenditures

Question 13

The ___________ Control account, a budgetary account, would be credited for the amount of the authorized spending limit.

Answer 13

Appropriations