Final Exam

Question 1

Three Basic Functions of Accounting

Answer 1

Recording (Bookkeeping)
Presentation (Reports)
Interpretation (Managing)

Question 2

What is our operating fiscal year?

Answer 2

October 1 - September 30

Question 3

Who is responsible for all the finances at the corps level?

Answer 3

Corps Officer

Question 4

How many signatures are required on our checks by our bylaws?

Answer 4

two

Question 5

Credit

Answer 5

means owed TO me or asset of…

Question 6

Debit

Answer 6

means trust or belief in or owed BY me…

Question 7

Asset

Accounts Receivable

Answer 7

Something of value / future economic benefit

Question 8

Liability

Accounts Payable

Answer 8

present obligations / claims against

Question 9

Fund Balance

Accounting Equation

Answer 9

Net Worth

Assets = liabilities + fund balance

Question 10

Cash Basis Accounting

Answer 10

income recorded when received
expenses recorded when paid out
Does not conform to GAAP

Question 11

Accrual Basis Accounting

Answer 11

Income recognized (recorded) when earned
Expense recognized (recorded) when earned
==whether or not cash received or paid out==
Conforms to GAAP

Question 12

Board Designated Group Funds

Answer 12

Major Corps Group Activities (10% of budget)

generally self supporting and/or activities that account for material volume of income and/or expeditures

Question 13

Example of Board Designated Groups

Answer 13

Home League
Women's Ministries
Men's Club
Music, Band, Songsters
Girl Guards, Boys Adventure Corps

Question 14

Who can approve a board designated group?

Answer 14

Command Finance Council

Question 15

What are board designated groups not?

Answer 15

community-service oriented

Question 16

Week Period

Answer 16

Week ends on Sunday
Final week of Month:
Extends to the last day of the month

Question 17

Gift in Kind

Answer 17

“gift of anything (goods or services) other than money.”

Question 18

Examples of Gift in Kind

Answer 18

Donated bread, canned goods
Donated toys at Christmas
Donated office supplies

Question 19

What are you to do with Gift in Kind?

Answer 19

keep a list of in-kind donations at fair market value.

entered into Shelby monthly

Question 20

Designated gifts

Answer 20

donations give to the church with specific instructions for their use.

Question 21

What we change names on our bank account, what legal document has to be completed?

Answer 21

Power of Attorney

Question 22

Counting Cash

Answer 22

donations are counted with donor
two people always count
record on activity income report with responsible signatures
income is always deposited as given

Question 23

Safeguarding Income

Answer 23

Once counted, the income should be secured in an authorized safe.
Funds are not to be held overnight
Funds are to be deposited weekly.

Question 24

When a receipt is requested by a donor:

Answer 24

a receipt book can be used -

• *has original and at least one duplicate, pre-numbered
• *include name, date, amount and purpose

Question 25

IRS Receipt requirements

Answer 25

for a donor to claim a tax deduction for a donation of $250 or more a written acknowledgement must be provided to the donor.

Question 26

Petty Cash definition

Answer 26

Relatively small amount of cash kept at hand for making immediate payments for miscellaneous small expenses.”

Question 27

Petty Cash Improper Use

Answer 27

any income that has not yet been deposited to pay expenses.

Question 28

Access to Petty Cash

Answer 28

Individual is responsible at all times Cash/vouchers kept in a locked box Kept in Main safe at night. At all times the box should total the amount of the Petty Cash between vouchers/cash When fare welling, the Officer must refund full amount back into Corps Bank Account through a separate deposit.

Question 29

Signature Counter signers

Answer 29

``` ALL SALVATION ARMY ACCOUNTS REQUIRE TWO SIGNATURES. Main Power of Attorney signature: Corps Officer and/or Spouse Countersignature: Local Officer, Employed Bookkeeper ```

Question 30

Bank Deposits

Answer 30

All funds given to The Salvation Army must be promptly and fully deposited in authorized account. All check endorsements must clearly indicate: “for deposit only to The Salvation Army _______Account”

Question 31

Bank Reconciliations

Answer 31

Bank Reconciliations are done on a monthly basis Commanding Officer is required to endorse every bank statement by signing the completed reconciliation form. Errors should be noted to the bank promptly.

Question 32

Support Service - National Policy

Answer 32

10% of all income less items given special exemption.

Question 33

Calculating Support Service

Answer 33

Total Income -Allowable Exemptions =Net income subject to support service Multiply net income by 10% (.10)

Question 34

Corps Operating Reserves

Answer 34

Corps General Deposit Reserve (Cash on Deposit) Corps Operating Reserves These are held at DHQ

Question 35

Specific Corps Operating Reserves

Answer 35

``` Automobile Corps Property Upkeep Quarters Property Upkeep Equipment Furnishings Computers ```

Question 36

Quid Pro Quo

Answer 36

You give me something, I'll give you something

Question 37

Payroll Equation

Answer 37

Gross earnings -Total deductions = Net Pay

Question 38

When you have a petty cash fund and you farewell a corps, what do you do with that petty cash fund?

Answer 38

Deposit it back out of your name

Question 39

Types of Donations

Answer 39

designated quid pro quo restricted