Not-for-profit: Preparing/Adjusting Financial Stmt

Question 1

What sort of assets will a not-for-profit report on the statement of operations?

Answer 1

The change in net assets without donor restrictions.

Question 2

Where are net asset reclassifications of a not-for-profit reported?

Answer 2

It will be reported on the statement of activities.

Question 3

What does the journal entry look like to reclassify an asset from with restrictions to without restrictions?

Answer 3

Dr. Reclassification with restrictions
Cr. Reclassification without restrictions
Dr. Asset or Expense
Cr. Cash

Question 4

What financial categories are used in not-for-profit orgs? (kind of a trick question)

Answer 4

Assets, Liabilities, and Net assets

Question 5

When is no revenue recognized for a pledge?

Answer 5

When the pledge is conditional no revenue is recognized.

Question 6

How is net patient service revenue recognized?

Answer 6

Gross Revenue
-Discounts
-Contractual adjustments
-Implicit price concessions

Question 7

On the statement of activities, what must never be netted together?

Answer 7

Revenues/Expenses from an annual fundraising campaign.

Question 8

What is a quasi-endowment and how is it reported when it comes to revenue with/without restrictions?

Answer 8

Quasi-endowment are funds set aside by the board, and are reported as net assets without restrictions