F9: Not-For-Profit Organizations Continued Deck #2 Flashcards Preview

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Flashcards in F9: Not-For-Profit Organizations Continued Deck #2 Deck (40):
1

Resource inflows for NFPs are classified as either _____ or ______.

Revenue or other support

2

Revenues represent what?

Exchange transactions (earns resources in exchange for services performed)

3

Other support represent what?

Operating income that is donated

4

Contribution definition

Voluntary transfer of cash or assets

5

Cash Contributions are recorded as revenues when?

-In period they are received
-Fair Value

6

Unconditional Promises AKA what?

Pledges

7

Unconditional Promises are recorded as revenues when?

-When promise is made
-Fair Value

8

An unconditional promise may be:

Written or verbal

9

Conditional Promises are recorded as revenues when?

When the conditions have been met

10

Multi-year pledges are recorded at what?

NPV at the date the pledge is made

11

How are Multi-Year Pledges recorded now and in the future?

Now = revenue
Future pledges = temporary restricted revenue

12

Split Interest Agreements definition

When NFO receives benefits that are shared with other beneficiaries

13

Split Interest Contributions should be measured at what and displayed how?

-Measured at FV at date of acquisition
-Displayed as temporarily restricted

14

Contributions of Donated Services are recognized SOME of the time. SOME stands for what?

S- specialized skills are required and possessed by the donor
O- otherwise needed by the organization
M- measurable
E- easily (at fair value)

15

Donated collection items are not required to be recoded if ALL criteria are met

(Same as governmental reporting)
-Held for public viewing
-Collection is cared for
-Organization has a policy

16

Unconditional promises to contribution in the future are reported as what?

Restricted support at PV

17

Agency transactions consist of what?

Resources received by the NFP over which the NFP has little or no discretion or variance power

18

Gifts in-kind definition

-Non-cash contributions to a NFP
-Measured at FV

19

Exchange transactions definition

Reciprocal transfers in which each party receives and sacrifices something of equal value

20

Calculation for exchange transaction contributions:

Amount transferred
- FV dues/purchases
= Contribution revenue

21

Recipient Accounting as an agent: asset treatment if no variance power

-Fair value
-Recognized as a liability

22

Recipient Accounting as an agent: asset treatment if granted variance power

-Fair value
-Recognized as contribution revenue when received and expensed when distributed to the beneficiary

23

Recipient Accounting if financially interrelated and granted variance power

-Fair value
-Recognized as contribution revenue when received and expensed when distributed to the beneficiary

24

Beneficiary Accounting with an agent: recognition rule

Recognize their rights to assets held by others UNLESS recipient has variance power

25

Gains & losses on investments are reported in what statement?

Statement of Activities

26

How are gains & losses on investments reported?

As increases/decreases in unrestricted net assets UNLESS restricted

27

An endowment fund is used to account for what?

Donated assets

28

3 types of endowment funds

1- Permanent endowment
2- Term endowment
3- Quasi-endowment

29

In a permanent endowment, corpus (principal) is what?

NOT allowed to be spent

30

A quasi-endowment fund is used when?

When the internal governing board of an institution has determined that funds are to be retained and invested for specified purposes

31

Is Fund Accounting used for external reporting for NFP?

NO!

32

7 basic types of funds used by NFP for internal reporting

1- unrestricted current funds
2- restricted current funds
3- plant funds
4- loan funds
5- endowment funds
6- annuity and life income funds
7- agency funds

33

Revenue types for colleges and universities

-Student tuition and fees
-Government aid, grants
-Gifts

34

Calculation for gross revenue from tuition and fees

Assessed Student Tuition and Fees
- Cancelled classes
= Gross revenue from tuition and fees

35

Expense type for colleges and universities

Scholarship/fellowship

36

3 Revenue types for health care organizations

1- Patient Service Revenue
2- Other Operating Revenue
3- Non-operating revenue and support gains/losses

37

Charity care is not recorded as _____ or ______.

A receivable or revenue
(Never expected to result in cash flows to the hospital)

38

Examples of "Other Operating Revenues" for healthcare organizations

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

39

Examples of "Non-Operating Revenues" for healthcare organizations

-Donated services
-Unrestricted items

40

Calculation for Patient Service Revenue

Gross Patient Service Revenue
- Charitable services
= Patient Service Revenue