Flashcards in Deck 14 Deck (20):
1
Interfund loans vs. interfund transfers for governments
Interfund loans: reciprocal activity; transfers: nonreciprocal activity
2
Holding gain =
Replacement cost at balance sheet date - original purchase price
3
Not-for-profits are required to produce the following financial statements
1. Statements of financial position; 2. statements of activities; and 3. cash flows
4
Restricted funds are restricted by who?
The donors (board restricted - unrestricted)
5
Expenses for NFP's are recorded as
Decreases in unrestricted net assets
6
When a temporary restriction is satisfied, a reclassification is shown as:
Decrease in temporary restricted assets but an increase in unrestricted assets
7
Pledges that cover multiple years are recorded at
Net present value (current year = revenue; future = temp. restricted)
8
What is the equity section for NFP financial statement called?
Net assets
9
Donor imposed restrictions that are met in the same period they are received may be recorded as:
Unrestricted support (contribution revenue)
10
Conditional pledge
Transactions that depend on an occurrence of a future event
11
Exchange transaction contributions is considered:
Contribution revenue (increases unrestricted net assets)
12
Organization is without variance power
NFP acts as agent but has no power; Debit asset for FV and Credit refundable advance
13
Organization has variance power
NFP acts as agent and has power; debit asset at FV and credit contribution revenue
14
Three kinds of revenues from health care organizations
1. patient service revenue; 2. other operating revenue; and 3. non operating revenue
15
Donation of medicine is recorded as
Other operating revenue
16
Quasi, endowment, term, and restricted endowment funds; displayed as:
Quasi (specific purpose): unrestricted; Term: temporary; endowment: permanent; restricted: temporary
17
Net patient service revenue =
Gross revenue - charity care - contractual adjustments
18
Nonreciprocal vs. reciprocal activity:
Nonreciprocal: non-exchange transactions between funds; Reciprocal: exchange transactions between funds
19
How do you recognize conditional promises?
Receive no recognition
20