Not-for-Profit Accounting & Reporting

Question 1

4 Categories for Non-Profit Organizations

Answer 1

1. Hospitals and other Health Care Organizations
2. Colleges, Universities, and other Educational Organizations
3. Voluntary Health and Welfare Organizations
4. Other Non-Profit Organizations

Question 2

3 Financial Statements for all NFPs

1 Financial Statement for VHWO NFP’s

Answer 2

1. Statement of Financial Position
2. Statement of Activity
3. Statement of Cash Flow
4. Statement of Functional Expenses

Question 3

3 Groups Reported on Statement of Financial Position

3 Classifications of Net Assets

Answer 3

1. Assets
2. Liabilities
3. Net Assets
4. Unrestricted
5. Temporarily Restricted (by purpose and/or time)
6. Permanently Restricted

Question 4

4 Sections of Statement of Activity

Answer 4

1. Revenues and Gains
2. Net Assets Released from Restriction
3. Expenses and Losses
4. Change in Net Assets

Question 5

Where are all expenses incurred from NFP’s?

What 2 classifications must be used to report expenses for NFP’s?

Answer 5

Unrestricted Net Assets

1. Programming Services
2. Supporting Services
   a. Management & General
   b. Fund Raising

Question 6

4 Classifications in the Statement of Cash Flows for NFP’s

Answer 6

1. Cash Flows from Operating Activities
2. Cash Flows from Investing Activities
3. Cash Flows from Financing Activities
   4.

Question 7

3 Conditions for Inexhaustible Fixed Assets

3 Examples

3 Accounting Exceptions for handling

Answer 7

Conditions

1. Held for public exhibit, education or research rather than financial gain.
2. Protected, kept unencumbered, cared for, and preserved
3. Proceeds from sale must be used to purchase other items for collections

Examples: 1. Works of art, 2. cultural treasures, 3. historical documents or property

Accounting Exceptions:

1. Do not need to be capitalized
2. Sale does not need to be recorded so long as proceeds used to purchase other collectibles
3. Depreciation does not need to be recorded

Question 8

4 Types of Endowments

Answer 8

1. Permanent endowments
2. Quasi-endowments
3. Term endowments
4. Board designated funds

Question 9

3 Revenue Categories for Hospitals

Answer 9

1. Patient Service Revenues
2. Premium Fees
3. Other Revenues

Question 10

Tuition revenue is reported net of what two items?

Answer 10

1. Scholarship Allowances

2. Uncollectible Amounts