FAR 1B4 Notes Flashcards

1
Q

🔄 How should an NFP record a transaction where it receives a contribution and gives an asset in return?

A

✅ Record the received contribution
✅ Record the asset given as sales revenue
✅ Deduct the sales revenue from the contribution amount

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2
Q

📑 What must NFPs disclose regarding donor-restricted net assets?

A

✅ Nature, type, and amount of different restrictions
✅ How and when (if ever) the restricted net assets can be used

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3
Q

🏦 What must NFPs disclose about board-designated net assets?

A

✅ Amounts and purposes of board designations
✅ Only for net assets without donor restrictions

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4
Q

📜 What must NFPs disclose about self-imposed limits on resource use?

A

✅ Any governing board actions that create restrictions

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5
Q

📊 What quantitative disclosures must NFPs make regarding financial assets?

A

✅ Availability of financial assets to meet cash needs for general expenditures within one year

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6
Q

💧 How must NFPs disclose financial asset liquidity?

A

✅ Quantitative disclosure of the availability of financial assets due to their nature

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7
Q

🚫 What external limits on financial assets must NFPs disclose?

A

✅ Restrictions imposed by donors

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8
Q

🔒 What internal limitations on financial assets must NFPs disclose?

A

✅ Any self-imposed restrictions by the organization

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9
Q

🔍 When is it unnecessary to disclose something in the notes?

A

✅ If the same information is disclosed on the face of the financial statements

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10
Q

🤝 What disclosures are required for joint costs in an NFP?

A

✅ Types of activities for which joint costs were incurred
✅ A statement that such costs have been allocated
✅ Total amount allocated and the portion allocated to each functional expense category

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11
Q

📌 What joint cost disclosures are optional but allowed?

A

✅ The amount of joint costs for each kind of joint activity

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12
Q

🎯 What donor restrictions must be disclosed in an NFP?

A

✅ Acquisition of long-lived assets
✅ Investment for a specified term
✅ Support for a particular operating activity

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13
Q

📊 Where must NFPs disclose an analysis of expenses?

A

✅ In the notes or the financial statements (FS)
✅ Must include both functional and natural classifications

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14
Q

📑 What is reported as supplemental information (not audited) in an NFP?

A

✅ Investing and financing activities that affect assets or liabilities but do not result in cash receipts or cash payments
✅ Examples: Acquisition of assets for stock, cash paid for interest and taxes

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15
Q

📉 What must be disclosed about underwater endowment funds?

A

✅ Aggregate fair value of underwater endowment funds
✅ Total original endowment gifts or levels required to be maintained by donor stipulation or law
✅ The NFP’s policy and actions taken regarding appropriation of underwater endowment funds

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