Nonprofit Flashcards
Testing your brain on
NPO accounting covers 4 different groups:
Health care
Colleges and universities
Voluntary Health and welfare
All others
NPO 3 basic F/S?
Statement of Financial Position
Statement of Activities
Statement of Cash Flows
Net asset section of the statement of Financial position what three accounts?
Unrestricted net assets
Temporarily restricted net assets
Permanently restricted net assets
NPO - The statement of activities reports:
revenues, net assets released from restriction, and expenses. repots the 3 categories of net assets
Net assets release from restriction is reported on which statement?
The statement of activities. Only the temporarily restricted goes to unrestricted section.
In NPO statement of cash flow:operating section entails
revenue collected,. outflow include expenses. contributions that can be spent on operations.
unrestricted and temporary restricted revenues.
rev, exp, interest income/expense, dividend income.
NPO statement of cash flow: investing section entails:
inflows include proceeds from he sale of assets and sales of work of art, outflow includes payments for asset purchases
NPO statement of cash flow: financing?
the cash flow effects of liability transactions. Inflows include proceeds from loans and outflows include principal payments on loans. Contriubtion that are permanently restricted or may only be spent on acquisition of assets are included. Includes 2 categories: proceeds from restricrted contributions and other financing activities.
Which organization must include statement of functional expenses?
voluntary health and welfare organization.
The statement is a detailed schedule of expenses broken down by funciton such as program expenses and support services.
What are NPO program services?
expenses that are directly related to the program.
Ex. a relieft organization might report categories for emergency relieft, community education, training, research, hospice services. etc.
(Further the mission of the organization)
NPO supporting services?
Secondary to the mission. Fund raising expenses and general and administrative expenses are reported.
G&A - marketing, tax preparation, printing annual report, business management, budgeting.
Fund raising - print and mail pledge cards, maintaining donor list, merchandise sent to potential contributors, salaries of fundraisers.
How do you account for temporary restriction being released?
2 entries.
Net assets released TRNA (debit)
Net assets realeased UNA (credit)
Then expense and cash.
How is marketable securities for NPO reported?
At fair value. Unrealized gains and losses are reported directly in the statement of activities.
Hospital has two statements:
The statement of Operations (activities). Has one line shown for “excess of revenues over expenses.” This is the performance indicator.
The statement of changes in net assets - presents . the other changes. ex. contributions for long term purposes would go here. perm. or temp restricted revenue go here.
