General-Purpose Financial Reporting: Nongovernmental Not-for-Profit Entities

Question 1

Conditional pledge vs unconditional.

Answer 1

Question 1

Statement of activities is equivalent to

Answer 1

Income statement.

Question 2

What is the statement of financial position for
a NPO similar to?

Answer 2

Balance Sheet

Question 3

What’s the difference between Statement of Financial Position and Statement of Activities

Answer 3

Statement of Fin Pos has Net assets with/without donor restrictions as the equity section, while statement of activities shows the changes in net assets both with/without donor restrictions during a period.

Question 4

Contribution revenue equation

Answer 4

Question 5

Revenues and gains non for profit hospital

Answer 5

Question 6

NFP Statements and their equivalents

Answer 6

Question 7

Bases and financial reporting frameworks

Answer 7

Question 8

NFP Functional expense catagories

Answer 8

Program services are NPOS mission, Supporting are secondary expenses.

Question 9

When do you recognize revenue for conditional pledges?

Answer 9

When the pledge is satisficed.

Question 10

Natural vs Functional Classificaions

Answer 10

Voluntary health and welfare NPOs are required to present both.

Question 11

NOP Statement of Cash flows

Answer 11

Question 12

Net assets with donor restrictions equation

Answer 12

Question 13

Ongoing central operations must be reported at their ________ amounts. Secondary or peripheral activities may be reported at their ____ amounts on the statement

Answer 13

gross

Net of revenue and expenses

Question 14

For NPO hospitals, service charges related to charity care must be deducted from gross revenue

Answer 14

Question 15

What is a split interest arrangement

Answer 15

when the donor and the NPO is the lead and remainder interest to a charitable remainder trust.

Question 16

Pledges/Contributions that are to be paid in a future period even without donor imposed restrictions, are still restricted because of time

Answer 16

Contributions to be paid later than a year are revenues with donor restrictions.

Question 17

Donations of services are recognized on the statement of activities if either of the 2 conditions are met. What are the 2 conditions

Answer 17

1) Services create or enhance a nonfinancial asset.
2) Services require specialized skills.

Question 18

Income from an endowment goes into _________

Answer 18

Net assets without donor restriction. It is not added back to the endowment balance

Question 19

Watch out for contributed collectibles like antiques or artifacts, these do not go on the financial statements but are __________

Answer 19

Disclosed in the footnotes.

Question 20

Donors designating donations as quasi endowments apparently do not go into assets with donor restrictions

Answer 20

Donors designating donations as quasi endowments apparently do not go into assets with donor restrictions

Question 21

On the Statement of financial position, where does Net assets go?

Answer 21

After Total Liabilities.
Net assets is in the equity position, showing net assets with/without donor restrictions.