Mod 22 Key terms

Question 0

Donor imposed restrictions tell you…

Answer 0

How you book revenue

Question 1

Donor imposed conditions tell you…

Answer 1

When you book revenue

Question 2

An activity is presumed to be fundraising, unless what 3 criteria are met?

Answer 2

1 purpose

2 audience

3 content

Question 3

Criteria for allocation of fundraising:

Purpose

Answer 3

Activity has more than 1 purpose

Evidenced by whether compensation or fees for performing the
Activity of amount raised or performance of management + general
Activity

Question 4

It looks better, when organization has more…

Answer 4

Expenses for program activities

Question 5

Criteria for allocation of fundraising:

Audience

Answer 5

If the audience is selected on the basis of its likelihood to contribute
To the not for profit, this criterion is not met

Question 6

Criteria for allocation of fundraising:

Content, in order for this criterion to be met…

Answer 6

The mailing or event must include a call to action other than raising money

Ex. Mailing from the American Cancer Society might call for recipients
To have regular checkups, exercise, and eat healthy

Question 7

If the university provides a $2,000 scholarship based on grades and gets $8,000 in cash what is the journal entry for student tuition and fees?

Answer 7

Cash. 8,000
Revenue deduction-student scholarships. 2,000
Revenue-student tuition and fees. 10,000

Question 8

What is the journal entry if the university provides $2,000 in graduate assistantships for service in the biology department and receives cash of $8,000?

Answer 8

Cash. 8,000
Expense-instruction (biology department). 2,000
Revenue- student tuition and fees. 10,000

Question 9

For healthcare organization accounting-private sector:

Financial statements

Answer 9

1 balance sheet
2 statement of operations
3 statement of changes in net assets
4 cash flow statements
5 notes

Question 10

Healthcare organization accounting-not for profit

Other revenues, gains and losses (included in operating revenues)4

Answer 10

1 investment income
2 fees from educational programs
3 proceeds from sale of cafeteria meals
4 proceeds from gift shop, parking lot revenue, etc.

Question 11

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Equity transfers involving…3

Answer 11

1 Other entities that control the reporting entity or

2 are controlled by the Reporting entity or

3 are under control of reporting entity

Question 12

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Receipt of…

Answer 12

Restricted contributions

Question 13

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Contributions of (and assets released from donor restrictions related to)…

Answer 13

Long lived assets

Question 14

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Unrealized gains and losses…

2) what’s the exception

Answer 14

On investments not restricted by donors or by law

2) except for investments classified by trading securities

Question 15

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Investment returns…

Answer 15

Restricted by donors or by law

Question 16

Healthcare organization accounting-private sector: Statement of operations performance measure what must be reported separately:

Other items that are required by GAAP to be…

2) 3 examples

Answer 16

Reported separately

1 extraordinary items
2 effect of discontinued operations
3 accounting changes