NFP

Question 1

Receipt of gifts WITHOUT donor restrictions

Answer 1

Operating Activities

Question 2

Receipt of and earnings on net assets restricted for LONG TERM Purposes

Answer 2

Financing Activities

Question 3

Sale of donated financial asset with NO restrictions

Answer 3

Operating Activities

Question 4

Acquisition of a building or equipment using RESTRICTED net assets

Answer 4

Investing Activities

Question 5

Noncash or in-kind contributions

Answer 5

Noncash investing and financing activities

Question 6

Revenue Recognition (Contribution Revenue)

Answer 6

Services are Professional in nature and
Entity would otherwise have to purchase the service

Question 7

Expenses

Answer 7

Decrease in net assets without donor restrictions on the statement of activities

Question 8

Program Classifications

Answer 8

Help achieve the major purpose or mission of the NFP.
Ex: Cancer research

Question 9

Support Activities

Answer 9

Assist the NFP in carrying out mission. Fund raising and mgmt and general

Question 10

MGMT and General Expenses

Answer 10

Cost of publicity and PR activities, cost of budgeting, accounting, reporting, legal services, office mgmt, purchasing etc.

Question 11

Conditional Pledges

Answer 11

Recorded as assets and revenues when the associated conditions are met

Question 12

Unconditional Pledges

Answer 12

Recorded as revenues and receivable once the promise is made. Multiyear pledges are recorded as revenues at the net present value of the future cash inflows