Deck 14 Flashcards Preview

FAR 2 > Deck 14 > Flashcards

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

Is depreciation expense recognized in the fund financial statements?

NO