NFP Accounting

Question 1

How would cash flow from a bookstore of a public university be shown on a statement of cash flows?

Answer 1

Cash flows from a public university’s bookstore would be cash from operations.

Question 2

On the statement of activities for a private university, expenses are reported by?

Answer 2

Function

Question 3

Permanently restricted funds

Answer 3

Permanently restricted funds are those which the donor restricts in such a way that the organization will never be able to use the support itself.

Question 4

The cost of construction of a university dormitory would be shown on a cash flow statement as what type of activity?

Answer 4

Investing Activity

Question 5

Private not-for-profit organizations should report a statement if cash flows using which method(s)?

Answer 5

SFAS 117 states that either the direct or indirect method may be used.

Question 6

Temporarily restricted net assets

Answer 6

Subject to a time or task requirement to use funds in a particular way.

Question 7

Name three examples of infrastructure assets.

Answer 7

RoadsBridgesSidewalks

Question 8

SFAS 117 requires which financial statements for private not-for-profit organizations?

Answer 8

Statement of financial positionsStatement of activitiesChange in net assetsStatement of cash flows

Question 9

SFAS 117 states that there are which three classifications of net assets?

Answer 9

UnrestrictedTemporarily restrictedPermanently restricted

Question 10

According to SGAS 35, cash flow statements for public universities must be presented how?

Answer 10

Cash flow statements must be presented and the direct method is required.

Question 11

The format for the cash flow statements for cash from operations (indirect method) begins with which item?

Answer 11

Operating income (or loss)

Question 12

SFAS 116 states that contributed services should be recognized if the services meet what two qualifications?

Answer 12

1) Require specialized skills2) They would typically need to be purchased if not provided by donationWhen recognizing donated services that entity would record the fair market value of the service as a contribution and an expense.

Question 13

Is a management’s discussion and analysis report for public colleges required?

Answer 13

The management’s discussion and analysis is required and should precede the financial statements.

Question 14

Interest paid on capital debt and leases must be reported on public colleges’ cash flow statement as?

Answer 14

Cash from capital and related financing activities

Question 15

FASB Statement No 117, Financial Statements of Not-For-Profit Organization, focuses on?

Answer 15

Focuses on the entity concept and views not-for-profits as a single unit rather than prior concepts that viewed the entity as being made up of component parts.

Question 16

What does SGAS 35 require public colleges to use?

Answer 16

SGAS 35 requires an economic resources measurement focus and accrual accounting.

Question 17

Three types of contributions under SFAS 116

Answer 17

UnrestrictedTemporarily restrictedPermanently restricted

Question 18

Public universities must disclose separately in their cash flow statements which activities?

Answer 18

Capital and noncapital related financial activities.

Question 19

According to SFAS 117, the financial statements for not-for-profit entity should focus on?

Answer 19

SFAS 117 required that financial statements focus on basic information for the organization as a whole.

Question 20

Statement of Activity purpose

Answer 20

The statement of activity is designed to provide information about changes in the organization’s net assets.