F9: Not-For-Profit Organizations Flashcards Preview

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Flashcards in F9: Not-For-Profit Organizations Deck (36):
1

NFP uses ____, not GASB

FASB

2

NFP are divided into 4 separate categories:

1- Health care organizations
2- Educational institutions
3- Voluntary Health and Welfare organizations
4- Other Private (not governmental) NFP organizations

3

Who are some users of NFP statements?

-donors, members, creditors

4

GAAP requires that NFP organizations report using what basis of accounting?

Full accrual basis of accounting

5

What is the overall emphasis for NFP statements?

Basic info for the organization as a whole

6

4 required financial statements for NFP

1- Statement of Financial Position
2- Statement of Activities
3- Statement of Cash Flows
4- Statement of Functional Expenses

7

What 3 components make up the Statement of Financial Position?

(Think B/S)
1- assets
2- liabilities
3- net assets (equity)

8

Assets & liabilities for NFP are classified as:

Current or noncurrent in order of maturity

9

3 components of Net Assets (equity) are:

"PUT"
1- Unrestricted net assets
2- Temporarily restricted net assets
3- Permanently restricted net assets

10

Internal board-designated funds are considered what?

Unrestricted net assets

11

Unrestricted net assets definition

Assets that aren't permanently or temporarily restricted

12

Temporarily restricted net assets definition

Donor-imposed stipulations that expire either through passage of time or can be fulfilled

13

Permanently restricted net assets definition

Use is limited by donor-imposed stipulations that neither expire nor can be fulfilled

14

What four elements are presented in the Statement of Activities?

(Think I/S)
- change in total net assets
- change in PUT net assets

15

When are donor-imposed contributions recorded as restricted revenue?

Period in which received

16

When a donor restriction is satisfied, what happens?

A reclassification is reported

17

How are expenses reported in the Statement of Activities?

As decreases in unrestricted net assets

18

Where are expenses shown?

Either in the face of the statement or in the notes

19

3 Classifications of Expenses

1- Program Services
2- Support Services
3- Combined Costs

20

Program Services definition

Activities of the organization

21

Support Services definition

Everything not classified as a program service

22

Combined Costs definition

NFPs that combine fund raising efforts with educational services

23

Is a Statement of Cash Flows required for all NFP organizations?

YES

24

What format is allowed for the Statement of Cash Flows

Either the direct method or the indirect method can be used

25

What 4 sections are shown in the Statement of Cash Flows?

1- Operating Activities
2- Financing Activities
3- Investing Activities
4- Cash & Cash Equivalents

26

Agency transactions are reported under what section of the Statement of Cash Flows?

Operating Activities

27

Cash transactions related to borrowing are reported under what section of the Statement of Cash Flows?

Financing Activities

28

Cash transactions related to certain restricted contributions are reported under what section of the Statement of Cash Flows?

Financing Activities

29

Donor-imposed restrictions limiting use to long-term purposes are reported under what section of the Statement of Cash Flows?

Financing Activities

30

Board designated revenues are reported under what section of the Statement of Cash Flows?

Operating Activities

31

Proceeds from the sale of works of art or purchases of works of art are reported under what section of the Statement of Cash Flows?

Investing Activities

32

Investment in equipment are reported under what section of the Statement of Cash Flows?

Investing Activities

33

Proceeds from the sale of assets that were restricted are reported under what section of the Statement of Cash Flows?

Investing Activities

34

Who is required to present a Statement of Functional Expenses?

Voluntary health and welfare organizations

35

Who is NOT required to present a Statement of Functional Expenses?

All other NFP organizations other than voluntary health and welfare

36

4 Classifications of Expenses on the Statement of Functional Expenses

1- Program Support Expenses
2- Fund-raising Expenses
3- Management and General Costs
4- Multiple Cost Items