Practice Exam 1

Question 1

What the is the rule to remember NFP volunteered time from a specialist?

Answer 1

SOME
S- specialized skill
O- Otherwise needed that can be 
M- Measured 
E- Easily

Question 2

When a person with a specialized skill volunteers their time/services to a NFP, is this recognized with or without restrictions?

Answer 2

revenue WITHOUT donor restrictions

Question 3

The financial statements of governments have focused on two forms of accountability… government wide financial statements focus on accountability in which way

Answer 3

Operational accountability

Question 4

The financial statements of governments have focused on two forms of accountability… fund financial statements focus on accountability in which way

Answer 4

Fiscal accountability

Question 5

What do government-wide financials focus on and what to fund financials focus on?

Answer 5

Gov-wide = operational accountability 
Funds= fiscal accountability

Question 6

What are the two funds that special revenue does not accounts for

Answer 6

1. debt service

2. major capital projects

Question 7

which format must proprietary funds (service/enterprise) use to report cash flow from operating activities?

Answer 7

Direct method of cash flow

Question 8

What format must the enterprise fund use to report cash flows from operations?

Answer 8

Direct method of cash flow

Question 9

How are unrealized holding gains form AFS debt securities recognized in accumulated other comprehensive income?

Answer 9

NET OF TAX

Question 10

How are realized gains from selling AFS debt securities reported?

Answer 10

??? look up

Question 11

What does IFRS require in relation to equipment and depreciation

Answer 11

Component depreciation

Question 12

What is component decpreciation

Answer 12

The equipment, component, and inspection fee must be depreciated separately

Question 13

How is goodwill impairment tested under IFRS?

Answer 13

One step test

CV of cash generating unit vs CGU recoverable amount

Question 14

What is the CGU recoverable amount under IFRS goodwill impairment testing?

Answer 14

CGU Recoverable Amount:

• Greater of:
  1) CGU FV - cost to sell
  2) Value in use (pv of future cash flows expected from CGU)

Question 15

Under goodwill impairment for IFRS, what is the value in use

Answer 15

PV of future cash flows expected from CGU

Question 16

What is one major difference in IFRS in regards to deferred tax assets and liabilities?

Answer 16

Under IFRS, all deferred tax assets and liabilities are netted and the amount is recorded as non-current on the balance sheet

Question 17

How should NFP organizations report donor-restricted cash contributions for long-term purposes in the statement of cash flow?

Answer 17

Financing activity inflow