Not For Profit

Question 1

Characteristics of not for profit

FASB

Answer 1

Revenue from contributions
Operating purpose is not a I make profit
Ownership is unlike business enterprises

Question 2

Common industries that use nfp accounting

Answer 2

Health care - hospital, nursing homes, and hospice

Education- colleges

Welfare org and volunteer - United way Red Cross

Other private. Fraternal .org labor unions library museums profession org aicpa

Question 3

User of nfp f/s

Needs of users

Answer 3

Donors, members, creditors others providing resources

Services provided
Ability to continue
How manage stewardship resources

Note use full accrual no funds!

Question 4

Nfp required fs

Answer 4

Statement of financial position = bs

Statement of activities = IS

And cf

Prepare in consistent manner in accordance with fasb

Question 5

How should you reports expenses

Answer 5

All expense must be reported by nature and function

Functional - purpose and mission
Nature - actual expense ie salary expense

Question 6

Statement of financial position B/s

Components and break out

Answer 6

Assets, liabilities, net assets

Net assets (can be a supplemental schedule)
With donor restriction 
Without donor restrictions 

Restrictions time purpose or even permanent

Internal board designated is not a restriction!

Sequence assets by closets to cash and lib by maturity

Question 7

Statement of financial position disclosure

Answer 7

1. Liquidity / maturity of assets and liabilities
2. how manage these resources

Description nature and contractual limits

Question 8

Statement of activities (i/s)

Change in net assets!!!!

Answer 8

Change in net assets with donor restriction

Without
And permanent restricted

Total net assets

Gains and losses dividends etc