Lesson 30 Nonrofit Accounting

Question 1

In preparation of the statement of activities for a nongovernmental not-for-profit organization, all expenses are reported as decreases in which of the following net assets classes?

Answer 1

Net assets without donor restrictions

Question 2

What are functional expenses for a nongovernmental not for profit organization?

Answer 2

Program services, management and general and fundraising

Question 3

An unrestricted cash contribution should be reported in a nongovernmental not for profit organization statement of cash flows as an inflow?

Answer 3

Operating activities

Question 4

How should operating expenses for a nongovernmental not for profit organization be reported?

Answer 4

Change in net assets without donor restrictions

Question 5

What is the primary purpose of the statement of activities of a nongovernmental not for profit organization?

Answer 5

To report the change in net assets for the period

Question 6

A pledge to be received in more than one year is accrued at?

Answer 6

It’s present Value

Question 7

How should not for profit record a pledge to another not for profit?

Answer 7

Increase in assets (cash) and increase in liabilities (obligation)

Question 8

If the board is deciding how funds will be used how will gift be reported?

Answer 8

Contribution without donor restrictions