Not for Profits

Question 1

What is the objective of the Disclosure of Functional Expenses?

Where is it presented?

Answer 1

The objective of the functional expense disclosure is to present the programmatic and support expenses displayed horizontally on the statement of activities in separate columns and analyze the expenses by object (natural classifications).

Presented on the Statement of Activities or the footnotes.

Question 2

NFP Statement of Cash Flows > Where are the following reported on the Statement of Cash Flows?

1) Agency transactions
2) Resources without donor restrictions designated by the GOVERNING body to be used for long-lived assets.

Answer 2

Operating Activities

Question 3

NFP Statement of Cash Flows > Where are the following reported on the Statement of Cash Flows?

1) Proceeds from the sale of works of art or purchases of works of art.
2) Investment in equipment
3) Proceeds from the sale of assets that were received in prior periods and whose sale proceeds were donor-restricted to investment in equipment or other long term assets.

Answer 3

Investing Activities

Question 4

Transactions recognized as an exchange transaction (revenues) are classified as without donor restrictions (all exchange transactions are without donor restrictions).

Answer 4

Transactions recognized as an exchange transaction (revenues) are classified as without donor restrictions (all exchange transactions are without donor restrictions).

Question 5

Donated utilities are classified as a contribution and an expense resulting in no change in net assets. Donated utilities are classified as without donor restrictions.

Answer 5

Donated utilities are classified as a contribution and an expense resulting in no change in net assets. Donated utilities are classified as without donor restrictions.