NFP

Question 1

How does A NFP account for depreciation:

Answer 1

Be included as an element of expense

Question 2

If NFP decides not to capitalize the art collection–how should this be handled in the fS

Answer 2

Include a line item on the face of the FS with disclosures regarding the collection

Question 3

Hann School, a nongovernmental not-for-profit entity, spent $1 million of temporarily restricted cash to acquire land and building. How should this be reported in the statement of activities?

Answer 3

Increase in unrestricted net assets

-When assets are released from restriction, the unrestricted category of net assets increases as the temporarily restricted category decreases.

Question 4

The statement of activities of all not-for-profit entities requires expenses to be presented according to function, such as program, fundraising, or management. Additional detail showing natural classifications of these expenses, classifications such as salaries, supplies, utilities, and so on:

Answer 4

is optional for all not-for-profits except voluntary health and welfare entities.