FAR 2

Question 1

Comprehensive Income

Answer 1

Sales - COGS- Operating Expenses. Then add debit securities

Question 2

Cash paid to suppliers in the current-year statement of cash flows (direct method)

Answer 2

COGS + (Ending- Beginning) + (AP begin- AP Ending)

Question 3

Net Assets without donor restrictions

Answer 3

Fair value of contribution+ dividends+( Fair Market Value- Value of securities.

Question 4

Capitalization of part of a collection is not permitted

Answer 4

An NFP may choose to (1) capitalize its collections, (2) capitalize prospectively only those items acquired after a given date, or (3) not capitalize collections.

Question 5

Accrual accounting.

Answer 5

A basic feature of financial accounting is that it is an accrual system under which the determination of periodic earnings and financial position is dependent upon the measurement of all economic resources and obligations (e.g., receivables and payables) and changes in them as the changes occur.