F8 - EPS, Cash Flow and NFP

Question 1

On a NFP statement of activity, where should management and general expenses be reported as?

Answer 1

Supporting services

Question 2

What financial statements are required for a non-governmental not-for-profit organization?

Answer 2

• Statement of financial position
• statement of activities
• statement of cash flows
  NFP corps are also required to disclose, display, or separately report the relationship between functional classifications and natural classifications of expenses.

Question 3

What does the FASB ASC 958, Financial Statements of NFP’s, focus on?

Answer 3

Basic information for the organization as a whole

Question 4

In an NFP, expenses decrease what account?

Answer 4

Net assets without donor restrictions

- Net assets with donor restrictions must be reclassified to w/out restrictions when ready to be used

Question 5

How are investment marketable securities and Assets measured for a NFP on the balance sheet?

Answer 5

At Market/ Fair Value on the balance sheet date

Question 6

What is a financially interrelated organization?

Answer 6

1. has the ability to influence the operating and financial decisions of the other
2. has an ongoing economic interest in the net assets of the other.

Question 7

How does an NFP record funds received specifically for a different organization?

Answer 7

if there is no variance power (donor controls who it goes too) then Dr Asset Cr. Refundable advance liability

Question 8

What is a paramount objective of financial accounting?

Answer 8

Accountability