Not for profit

Question 1

Statement of financial position (bs)

Answer 1

Assets, Liab and Fund balance

Question 2

Statement of operations

Answer 2

Revenue - expenses = excess of revenue over expenses

Question 3

Statement of fund balance

Answer 3

Like the r.e.

Opening
+ excess of rev over expenses
= closing

Question 4

2 Choices for accounting

Answer 4

Aggregate - like for profit

Fund

Question 5

Fund accounting

Answer 5

Segment f/s based on nature of various projects/programs

Question 6

Common funds

Answer 6

General
Restricted
Capital Asset
Endowment

Question 7

Endowment fund

Answer 7

Principal remains in fund and only interest can be spent

Question 8

Methods for contribution revenue

Answer 8

Deferral method

Restricted fund method

Question 9

Deferral method

Answer 9

1. Restricted contributions - Deferred and recognized in the period related expenses are incurred. If an asset is received record w/ amort of asset
2. Endowment contributions - Record as increase to net assets. Transfer to investment account when invested. Interest is recorded as revenue only.

Question 10

Restricted fund method

Answer 10

Specific funds set up to record revenue

ie DR CASH
CR Contribution revenue - specific fund

Revenue recognized when receive funds. Not deferred.

Question 11

Donated Goods and services

Answer 11

Can be recorded only:
- The fair value of the donated item can be reasonably estimated

• The good/ service can be used in the normal course of operations

Record at FV

Question 12

NPO’s under $500,000 PPE choices

Answer 12

• Directly expenses capital asstes
• Capitalize and don’t take amort
• Capitalize and take amort