F8

Question 1

Required financial statements for not for profit

Answer 1

Statement if Financial Position
Statement of Activities
Statement of Cash Flows

Question 2

Program services vs support

Answer 2

Program relates to the mission of the organization while support relates to activities everything else

Question 3

Statement of Financial position for not for profit

Answer 3

• assets, liabilities, and net assets

- assets & liabilities classified as current or noncurrent

Question 4

Statement of Activities for not for profit

Answer 4

• changes in total net assets
• changes in net assets without restriction
• changes in net assets with restriction

Question 5

Not for profit investing activities

Answer 5

Investments in PP&E

Proceeds from sale of art or disbursements to purchase art

Proceeds from sale of assets

Question 6

Not for profit financing activities

Answer 6

Proceeds from issuing bonds and shit

Repayment on borrowed shit

Receipts for contribution restricted

Question 7

How to account for revenues for not for profit

Answer 7

Full accrual and increase in revenues is an increase in net assets without donor restriction

Question 8

Conditional pledge vs unconditional

Answer 8

Conditional is revenue when earned where unconditional is revenue when received

Question 9

Good faith deposit

Answer 9

It is a liability

Dr. Cash
Cr. Refundable advance

Question 10

Proceeds from issuing bonds and shit

Repayment on borrowed shit

Receipts for contribution restricted

Answer 10

S.O.M.E

Specialized skills from donor
Otherwise needed by organization
Measurable
Easily at FV

Dr. Expense or Asset
Cr. Contributions - without restriction

Question 11

Contribution without restriction but there is time restriction

Answer 11

Dr. Pledge Receivable - restricted
Cr. Allowance
Cr. Contributions - restricted

When collected
Dr. Cash - restricted
Cr. Pledge receivable - restricted
Dr. Satisfaction of time restriction
Cr. Cash - without restriction

Question 12

Contribution with restriction

Answer 12

Dr. Pledge receivable - restricted
Cr. Allowance
Cr. Donor restricted support

When receivable is collected and money is spent on purpose
Dr. Reclassification
Cr. Cash - restricted

Net assets without restriction increase at the same time
Dr. Cash - unrestricted
Cr. Reclassification 
Dr. Operating expense
Cr. Cash - unrestricted

Question 13

Not for profit healthcare - patient revenue

Answer 13

Gross patient revenue
(Charity care)
(contractual adjustments)
(policy discounts)
(admin adjustments)

Question 14

Not for profit healthcare - other operating revenue

Answer 14

• tuition from schools
• revenue from educational programs
• donated supplies and equipment
• specific purpose grants
• revenue from auxiliary activities
• cafeteria revenue
• parking fees
• gift shop revenue
• medical transcription fees

Question 15

Not for profit healthcare - nonoperating revenue and support gains and losses

Answer 15

• interest and dividend income from investments
• gifts and bequests
• grants
• income from endowment funds
• income from board designated funds
• donates services

Question 16

Not for profit contribution to give to others when there is no benefit or power

Answer 16

Dr. Asset

Cr. Liability

Question 17

Not for profit contribution to give to others when there is no benefit but has power

Answer 17

Dr. Asset

Cr. Contribution

Question 18

Not for profit contribution to give to others when there is benefit but no power

Answer 18

Dr. Asset

Cr. Contribution

Question 19

Objectives of Government reporting

Answer 19

Timeliness
Consistency
Comparability

Question 20

Government fund accounting

Answer 20

Modified accrual accounting

Current financial resources measurement

Question 21

Proprietary fund accounting

Answer 21

Full accrual

Economic resources measurement focus

Question 22

BAE BAE accounting

Answer 22

Book: budget, activity, encumbrances

Close: budget, activity, encumbrances

Whatever it was booked for, close the same about out

Question 23

Sources of Government resources

Answer 23

Revenue: taxes from income and sales, taxes from property and real estate, and fines & penalties

Other financing sources: debt proceeds like bonds and notes and interfund transfers

Question 24

Booking budget journal entries: (B)ae (B)ae accounting

Answer 24

Beginning of year
Dr. Estimated revenue control
Dr. Budgetary control deficit
Cr. Appropriations control(approved spending)
Cr. Budgetary control surplus 

End of year
Dr. Appropriations control
Dr. Budgetary control surplus
Cr. Estimated revenue control
Cr. Budgetary control deficit

Question 25

Non-exchange revenue for b(A)e b(A)e

Answer 25

- Nonexhange means the government just takes it - 2011: collections (Jan - Dec) plus 2012 items outstanding (Jan - Feb) *First 60 days* - derived revenues: tax like sales and income - imposed: fines or property taxes

Question 26

Property tax journal entries

Answer 26

Property taxes levied(issued( Dr. Real estate taxes receivable - current Cr. Revenues - property taxes Cr. Allowance Collection of property taxes Dr. Cash Cr. Real property taxes receivable - current ``` To reclass receivables to delinquent Dr. Property axes receivable-delinquent Cr. Property taxes receivable-current ``` To Add to allowance Dr. Revenues-property taxes Dr. Allowance-current Cr. Allowance-delinquent

Question 27

Expenditure J/E

Answer 27

Dr. Expenditure | Cr. Voucher payable

Question 28

Transfers between funds

Answer 28

- not spending dollars - not expenditure - you debit other financing uses

Question 29

Purchase method for expenditures

Answer 29

You record expenditure when purchased and record a current asset and nonspendable fund balance at year end for items not used(still on hand Buying Dr. expenditure Cr. voucher payable On hand year end Dr. Supplies inventory Cr. Nonspendable fund balance

Question 30

Consumption method for expenditures

Answer 30

Record current asset when purchased and record expenditure as consumed during the period Buying Dr. Supplies inventory Cr. vouchers payable Use of item Dr. Expenditure Cr. Supplies inventory

Question 31

Fixed asset(capital outlay) expenditure

Answer 31

Dr. Expenditure - capital outlay Cr. Voucher payable/cash Fixed assets are not depreciated

Question 32

Long term debt expenditures

Answer 32

Are recorded in government funds as other financing sources and repayment of long term debt is expenditure Proceeds from bond issuance Dr. Cash Cr. Other financing sources - bonds issued Debt service payments Dr. Expenditure-principle Dr. Expenditure-interest Cr. Cash

Question 33

Other Financing: leases expenditures - lessee

Answer 33

J/E to record lease at beginning of year Dr. Expenditure - capital outlay Cr. Other financing sources Lease payments Dr. Expenditure-principle Dr. Expenditure-interest Cr. Cash

Question 34

Other Financing: leases expenditures - lessor

Answer 34

Beginning of year Dr. Lease receivable Cr. Revenue Cr. Deferred inflow of resources Dr. interest receivable Cr. interest revenue Receipt at end of year Dr. Cash Cr. Lease receivable Cr. Interest receivable

Question 35

Lessee accounting for prop, feduc, and government wide statements

Answer 35

Beginning of the year Dr. Right of use asset Cr. Lease liability Lease payments Dr. Lease liability Dr. Interest expense Cr. Cash Dr. Amortization Cr. Accumulated amortization

Question 36

Lessor accounting for prop, feduc, and government wide statements

Answer 36

Beginning of the year Dr. Lease receivable Cr. Deferred inflow or resources Receipts Dr. Cash Cr. Interest income Cr. lease receivable Dr. Deferred inflows or resources Cr. Revenue

Question 37

Good faith deposits

Answer 37

When someone contributes on the condition that you need to match is a liability (refundable advance)