Day 11 - NFP Flashcards
Not for profit corporations FS:
- Stmt of Financial Position
- Stmt of Activities
- Stmt of Cash Flows
Also required to disclose the relationship between functional classifications and natural classifications of expenses
MCQ-01222
FASB ASC 958, focuses on:
Basic information for Not For Profit organizations as a whole
MCQ-01298
The primary purpose and focus of the Stmt of Activities for a NFP is?
To demonstrate how the organizations recourses are used in providing various programs and services
Note: Cash activities are reported on the Stmt of Cash Flows
MCQ-08716
What and where are the classifications of expenses reported for a NFP?
Functional Classification - Stmt of Activities
Natural Classification - in the notes of the FS
MCQ-01253
The purpose of the Stmt of Financial Position for a NFP:
The assets, liabilities, and net assets, and their relationships to one another at a moment in time
Stmt of Activities provides info on changes in net assets with and without donor restrictions
MCQ-04304
What information would be included in total net assets on the Stmt of Financial Position?
- Net assets without donor restrictions
- Net assets with donor restrictions
MCQ-08273
Rule: Donor imposed restrictions that are met in the same period they are received may be recorded as Support (Contribution Revenue) Without Donor Restrictions
MCQ-05148
ABC Foundation, a NFP received the following contributions:
- Cash Contributions of $500k without donor restrictions
- Cash Contributions $200k with donor restrictions with specific requirements to the acquisition of property
In what categories should the contributions be in on the Stmt of Cash Flows?
$500k = Operating Activities
$200k = Financing Activities
EX: The $200k contribution is considered a loan than you use the proceeds from the loan to invest. The loan is a FINANCING ACTIVITY
MCQ-01255
How should a NFP report amounts paid for interest in a Stmt of Cash Flows prepared using the Indirect Method?
As a supplemental disclosure of cash flow information
Just like Commercial Acctg - The Indirect Method will not present cash pmts for interest as a separate line item, Interest paid will be specifically included as a Supplemental Disclosure
MCQ-16136
A NFP elected not to capitalize its donated permanent collections. In Year 1, a statue was stolen and was not recovered. Insurance proceeds of $35k were paid in Year 2. How should this transaction be reported?
In the Stmt of Cash Flows from Investing Activities
NFP’s that DO NOT capitalize their Collections display Insurance Proceeds from lost/stolen items on the Stmt of Activities in the “Change in Net Assets” section
Contributed Collections that are NOT capitalized should report the following on the Stmt of Activities separately from revenues, expenses, & G/L:
- Cost of Collection items purchases = decrease of Net Assets
- Proceeds from sale of Collection items = increase of Net Assets
- Proceeds from insurance recoveries = increase of Net Assets
MCQ-01243
The MET Museum sells a donated painting and plans to use the proceeds to purchase additional works of art to display. Where would this be reported on the SOCF?
Rule: Investing Activities = PROCEEDS from the sale of art & PURCHASES of art
MCQ-05149
NFP - What section of the Stmt of Cash Flows is this reported:
Dividend income earned on equity securities
Operating Activities
represents an increase in Net Assets & would be treated like an increase in Net Income
TBS-038103
NFP - What section of the Stmt of Cash Flows is this reported:
Interest payment on short-term bank loan
Operating Activities
Consistent with commercial accounting
TBS-038103
NFP - What section of the Stmt of Cash Flows is this reported:
Interest earned on endowment
Operating Activities
Interest earning would be accounted for in the Stmt of Activities as in INCREASE in Net Assets
TBS-038103
