NFP

Question 1

Fund Accounting

Answer 1

internal framework use for external reporting

Question 2

Liabilities must be recognized from the following criteria

Answer 2

A- Unconditional promised to give
B- Amounts received in agency transaction

Question 3

Investment Returns

Answer 3

Any investment returns not related to the program services must be reported net of external

Question 4

External Financial Reporting

Answer 4

Helps to Stewardship responsibilities

Question 5

Other Assests include

Answer 5

Uilities such as electricity

Question 6

Promise to Give

Answer 6

is a written or oral agreement to contribute assets to another enity

Question 7

Donor- restricted funds

Answer 7

Investment of the gift in perpetuity

Question 8

NFPs most likely should report

Answer 8

Financial reporting by an NFP should provide information about economic resources, obligations, net resources, and changes in them. They include (1) performance during a period, (2) nature and relationship of resource inflows and outflows, (3) service efforts and accomplishments, and (4) factors affecting liquidity.

Question 9

What are the two types of donor-imposed restrictions?

Answer 9

Temporary
Perpetual

Question 10

What are the two types of temporary donor-imposed restrictions?

Answer 10

Time restrictions
Require resources to be used in a later period or after a specific date
Purpose restrictions
Require resources to be used for specific purposes

Question 11

When do NFPs recognize liabilities?

Answer 11

An NFP must recognize a liability when
There is an unconditional promise to give or
An amount is received in an agency transaction.

Question 12

How are gains and losses reported in the statement of activities of an NFP?

Answer 12

Gains and losses on assets or liabilities are changes in net assets without donor restrictions unless their use is restricted explicitly by the donor or by law.

Question 13

Financing

Answer 13

Receipts of resources that are donor-restricted for long-term purposes

Question 14

Investing

Answer 14

g
Cash flows from purchases, sales, and insurance recoveries of capital assets
Donor-restricted interest and dividends

Question 15

Operating

Answer 15

Receipts of contributions without donor restrictions
Interest and dividends on investments without donor restrictions
Premium payment on a group life insurance

Question 16

What are not considered contributions to an NFP?

Answer 16

Investments by, or distributions to, owners
Involuntary nonreciprocal transfers, such as taxes
Exchange transactions

Question 17

Net Realizable Value

Answer 17

Unconditional promises to give, expected to be collected in less than 1 year, may be recognized at net realizable value (that is, minus an estimated uncollectible amount).

Question 18

Fair Value

Answer 18

Contributions received ordinarily are accounted for when received at fair value as credits to revenues or gains.

Question 19

Operating Expenses

Answer 19

General Contributions, Net Assets released from restriction, and fair market value of any vehicle

Question 20

Not Requirement of NFP

Answer 20

Tax- Exempt must report a statement of functional expenses

Question 21

Investment Expense

Answer 21

Netted against investment return not related to program services. It is also reported with the same net asset category

Question 22

Noncash Financing and investing activities

Answer 22

receipt of a contribution of a building, securities, or recognized collection items, must be disclosed separately

Question 23

Cash Flow from Operating Activities

Answer 23

Include receipts of contributions without donor restrictions and receipt of cash from a donor

Question 24

Trade Receivable

Answer 24

The allowance for credit losses is subtracted from the amortized cost basis of the financial asset(s) to present the net amount to be collected. At each reporting date, an entity records an allowance for credit losses reflecting any change in expected credit losses. This change (credit loss expense or a reversal) is included in net income. Moreover, the allowance for credit losses is separately presented on the statement of financial position.

Question 25

Refundable Advances

Answer 25

transfer of contributed assets before a condition is met is a conditional contributio

Question 26

not Recognized

Answer 26

Transactions received by agency