Non-profit

Question 1

Statement of Activities

Main purpose

Answer 1

Report change in net assets - similar to the income statement

Question 2

Functional expenses divides expenses into

Answer 2

1. Program (supports the mission)

2. Support (management and fundraising)

Question 3

Financial reporting objective

Answer 3

1. Is mgmt performing well

2. Legal compliance

Question 4

Donated fixed assets are recorded at

Answer 4

fair value

Question 5

Expenses are decreased

Answer 5

In net assets without restriction

Question 6

Mark to Market

Marketable equity securities and all debt securities investments

Answer 6

Measured at fair value in statement of financial position

Question 7

Statement of activities

Answer 7

Income statement

Question 8

Statement of financial position

Answer 8

Balance sheet

Question 9

Investment gains and losses

Answer 9

Report on stmt of activities in w/o restriction unless the use is restricted

Question 10

Residual interest

Answer 10

Characterization of net assets

Question 11

FASB guidance w nonprofit reporting

Answer 11

ASC 958

Question 12

Fundraising expenses

Answer 12

Maintaining a donor list

Anything listing membership activities

Question 13

Quasi endowments

Answer 13

Board designated endowments,

Net assets without restriction

Question 14

JV donor pays

Question 15

Split interest agreement

Answer 15

Lead interest for 1 party and remainder interest for another party

Question 16

Non profit stmt cash flows

Answer 16

Operating
Investing
Financing
Supplemental Disclosures
Can be direct or indirect