Not-for-Profit Flashcards
How is cash borrowed classified?
he borrowing would be a cash inflow from financing activities, and the purchase of the truck would be a cash outflow from investing activities.
What is the primary purpose of the statement of activities of a nongovernmental not-for-profit organization?
To report the change in net assets for the period.
The purpose of the not-for-profit statement of activities is to report the revenues and expenses, gains and losses, and reclassifications between classes of net assets that produce the change in net assets for the period in total and for each applicable classification of net assets (unrestricted, temporarily restricted, and permanently restricted).
What is a merger?
Governmental mergers are defined as a combination of legally separate entities without the exchange of significant consideration resulting in the elimination of an entity or entities and either the continuation of a single merged entity or the creation of a new government. Transactions are measured at their carrying value at the merger date.
How is a gain or loss recorded/displayed by the company that is disposing the item?
Gains or losses on disposals of governmental operations are displayed as a special item by the disposing government.
How should a transferee government recognize the net fund balance of an operation it receives?
Transferee governments should recognize the net fund balance of an operation it receives as a special item in the period the transfer occurs.
Where should depreciation be included in the statement of activities for a voluntary health & welfare organization?
Depreciation is included as an element of expense
Funds received by a college from donors who have stipulated that the principal is nonexpendable but that the income generated may be expended by current operating funds would be accounted for internally in the:
Endowment fund
Where should “management and general” expenses incurred by a community foundation be reported on the statement of activity?
As part of support services
Is the recognition of depreciation expense always required for externally published fund financial statements of public colleges and externally published financial statements of private not-for-profit colleges?
The recognition of depreciation expense on depreciable assets is always displayed in the externally published financial statements of “private not-for-profit colleges,” but not always required for “public colleges” in their externally published fund financial statements
How should transfers received by a governmental-type fund should be reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance?
Other financing source.
