FAR - NFP - Intro

Question 1

4 types of NPO

Answer 1

1) Voluntary Health & Welfare Organizations (VHWO)
2) Other NPO
3) Healthcare
4) Colleges & Universities

Question 2

Voluntary Health & Welfare Org

Answer 2

• provides FREE/low-cost services with financial support from contributions/grants
• resource providers are NOT primary recipients of services

EX: United way, Red Cross, Boy Scouts/Girl Scouts, Make a Wish Foundation, American Heart Association

Question 3

Other NPOs

Answer 3

• Benefit their members
• resource providers can be primary recipients of services

EX: libraries, museums, professional associations, religious orgs, fraternal orgs, political parties, research orgs, private foundations

Question 4

Non-governmental hospitals, colleges/universities follow what type of standards?

Answer 4

FASB

Question 5

Governmental hospitals & colleges/universities follow what type of standards?

Answer 5

GASB

Question 6

NFP Standard Setting

Answer 6

1) FASB sets standards for non-gov’t NPOs
2) Key FASB Standards
- #116 - Contributions
- #117 - Financials
- #124 FV Acct
- AICPA Guide for NPOs

Question 7

True/False

Governmental NPOs can impose taxes whereas Private (non-gov’t) NPOs cannot impose taxes on citizens

Answer 7

true

Question 8

True/False

Nongovernmental not-for-profit organizations use full accrual accounting and the flow of economic resources measurement focus

Answer 8

True