Not-For-Profit Organizations

Question 1

What are the 4 categories related to not-for-profit accounting?

Answer 1

Health care organizations, educational institutions, voluntary health and welfare organizations, and other private not-for-profit organizations

Question 2

What basis of accounting does not-for-profit entities report on?

Answer 2

Full accrual basis of accounting

Question 3

The overall emphasis for not-for-profit financial statements is?

Answer 3

On basic information for the organization as a whole

Question 4

What board governs Not-For-Profit Organizations?

Answer 4

Financial Accounting Standards Board

Question 5

What are the required financial statements for Not-For-Profit organizations?

Answer 5

Statement of Financial Position, Activities, Cash Flows, and Functional Expenses

Question 6

What are the 3 different components of Net Assets?

Answer 6

Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets

Question 7

What type of net asset is an internal board-designated fund?

Answer 7

Unrestricted Net Asset

Question 8

Expenses are categorized as?

Answer 8

Program services, support services, or combined costs

Question 9

What method can be used for the Statement of Cash Flows?

Answer 9

Direct or indirect

Question 10

Cash flows from financing activities may be segregated on the face of the financial statements as follows?

Answer 10

Proceeds from Restricted Contributions and Other Financing Activities

Question 11

What are examples of proceeds from restricted contributions?

Answer 11

Increases to an endowment, purchases of assets, or annuity agreements

Question 12

What are examples of investing activities?

Answer 12

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

Question 13

The Statement of Functional Expenses is mandatory for?

Answer 13

Voluntary health and welfare

Question 14

What are the common functional classification of expenses?

Answer 14

Program support, fund-raising, and management and general costs

Question 15

What does revenues typically represent?

Answer 15

Exchange transactions

Question 16

What does other support typically represent?

Answer 16

Operating income that is donated or porvided

Question 17

When is cash contributions recognized?

Answer 17

In the period in which they are received

Question 18

When is unconditional promises recognized?

Answer 18

When the promise is made

Question 19

When is a conditional promise recognized?

Answer 19

When conditions are substantially met and the promise becomes unconditional

Question 20

How are multi-year pledges recorded?

Answer 20

Net present value at the date the pledge is made

Question 21

How are split interest contributions measured?

Answer 21

At fair value at the date of acquisition

Question 22

Criteria for donated services to be recognized?

Answer 22

Specialized skills are required and possessed by the donor, Otherwise needed by the organization, measurable, and easily(at fair value)

Question 23

Donated collection items are not required to be recorded by the recipient not-for-profit organization if all of the following requirements are met?

Answer 23

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

Question 24

JE for Unrestricted pledges - temporarily restricted

Answer 24

Dr. Pledge receivable - temporarily restricted, Cr. Allowance for doubtful accounts and Cr. Contributed revenue - temporarily restricted

Question 25

How are gifts in-kind measured?

Answer 25

Fair value

Question 26

What is the general rule for exchange transaction contributions?

Answer 26

Amount transferred - Fair vale dues/purchase = Contribution revenue

Question 27

JE for assets received by recipient without variance power?

Answer 27

Dr. Asset and Cr. Refundable advance(liability)

Question 28

JE for assets received by recipient granted variance power?

Answer 28

Dr. Asset and Cr. Contribution revenue

Question 29

JE for assets accepted by an organization finanically interrelated and is granted variance power?

Answer 29

Dr. Asset and Cr. Contribution revenue

Question 30

JE for recognized interest when the organizations are financially interrelated?

Answer 30

Dr. Asset and Cr. Equity transaction

Question 31

JE for recognized beneficial interest - Pool of assets?

Answer 31

Dr. Beneficial interest and Cr. Contribution revenue

Question 32

JE for recognized receivable and contribution revenue?

Answer 32

Dr. Receivable and Cr. Contribution revenue

Question 33

What does revenues consist of from universities and colleges?

Answer 33

Student tuition and fees, government aid, grants, and contracts, and gifts and private grants

Question 34

Computation of gross revenue from tuition and fees?

Answer 34

Assessed student tution and fees - cancelled classes = Gross revenue from tuition and fees

Question 35

Computation of patient service revenue?

Answer 35

Gross patient service revenue - charitable services = patient service revenue