Not-For-Profit Organizations Flashcards
What are the 4 categories related to not-for-profit accounting?
Health care organizations, educational institutions, voluntary health and welfare organizations, and other private not-for-profit organizations
What basis of accounting does not-for-profit entities report on?
Full accrual basis of accounting
The overall emphasis for not-for-profit financial statements is?
On basic information for the organization as a whole
What board governs Not-For-Profit Organizations?
Financial Accounting Standards Board
What are the required financial statements for Not-For-Profit organizations?
Statement of Financial Position, Activities, Cash Flows, and Functional Expenses
What are the 3 different components of Net Assets?
Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets
What type of net asset is an internal board-designated fund?
Unrestricted Net Asset
Expenses are categorized as?
Program services, support services, or combined costs
What method can be used for the Statement of Cash Flows?
Direct or indirect
Cash flows from financing activities may be segregated on the face of the financial statements as follows?
Proceeds from Restricted Contributions and Other Financing Activities
What are examples of proceeds from restricted contributions?
Increases to an endowment, purchases of assets, or annuity agreements
What are examples of investing activities?
Proceeds from the sale of works of art or purchases of works of art, investment in equipment, and proceeds from the sale of assets that were received in prior periods and whose sale proceeds were restricted to investment in equipment
The Statement of Functional Expenses is mandatory for?
Voluntary health and welfare
What are the common functional classification of expenses?
Program support, fund-raising, and management and general costs
What does revenues typically represent?
Exchange transactions
What does other support typically represent?
Operating income that is donated or porvided
When is cash contributions recognized?
In the period in which they are received
When is unconditional promises recognized?
When the promise is made
When is a conditional promise recognized?
When conditions are substantially met and the promise becomes unconditional
How are multi-year pledges recorded?
Net present value at the date the pledge is made
How are split interest contributions measured?
At fair value at the date of acquisition
Criteria for donated services to be recognized?
Specialized skills are required and possessed by the donor, Otherwise needed by the organization, measurable, and easily(at fair value)
Donated collection items are not required to be recorded by the recipient not-for-profit organization if all of the following requirements are met?
The item is part of a collection, which is held for public viewing, the collection is cared for, and the organization has a policy that requires any proceeds from the sale of donated items to be reinvested in other collection items
JE for Unrestricted pledges - temporarily restricted
Dr. Pledge receivable - temporarily restricted, Cr. Allowance for doubtful accounts and Cr. Contributed revenue - temporarily restricted
How are gifts in-kind measured?
Fair value
What is the general rule for exchange transaction contributions?
Amount transferred - Fair vale dues/purchase = Contribution revenue
JE for assets received by recipient without variance power?
Dr. Asset and Cr. Refundable advance(liability)
JE for assets received by recipient granted variance power?
Dr. Asset and Cr. Contribution revenue
JE for assets accepted by an organization finanically interrelated and is granted variance power?
Dr. Asset and Cr. Contribution revenue
JE for recognized interest when the organizations are financially interrelated?
Dr. Asset and Cr. Equity transaction
JE for recognized beneficial interest - Pool of assets?
Dr. Beneficial interest and Cr. Contribution revenue
JE for recognized receivable and contribution revenue?
Dr. Receivable and Cr. Contribution revenue
What does revenues consist of from universities and colleges?
Student tuition and fees, government aid, grants, and contracts, and gifts and private grants
Computation of gross revenue from tuition and fees?
Assessed student tution and fees - cancelled classes = Gross revenue from tuition and fees
Computation of patient service revenue?
Gross patient service revenue - charitable services = patient service revenue
