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Flashcards in NFP Deck (77):
1

Whitestone, a nongovernmental not-for-profit organization, received contribution in December, year I. The donor restricted use of the contribution until March, year 2. How should Whitestone record the contribution? 

Report as income in year I. 

2

At the beginning of the year, the Saker Fund, a nongovernmental not-for-profit corporation, received a $125,000 contribution restricted to youth activity programs. During the year, youth activities generated revenues of $89,000 and had program expenses of $95,000. What amount should Saker report as net assets released from restrictions for the current year? 

$95,000

3

During year I, an alumnus of Smith College, a private not-for-profit college, transferred $100,000 to the college with the stipulation that it be spent for library' acquisitions. However, the alumnus specified that none of the cash transferred could be spent until the college had matched the entire amount transferred with donations from other alumni by December 31, year 2. As of December 31, year I, the college had received matching cash donations of only $5,000 from other alumni, and the college estimated that it was reasonably possible that it would not reach the goal of $100,000 by December 31, year 2. If the funds are not matched by December 31, year 2, the cash will be returned to the alumnus. On the college's statement of financial position at December 31, year I, the cash transfer of $100,000 would be included in the amount reported for 

Liabilities.

4

During the year, Public College received the following:

An unrestricted $50,000 pledge to be paid the following year.

A $25,000 cash gift restricted for scholarships.

A notice from a recent graduate that the college is named as beneficiary of $10,000 in that graduate's will.

What amount of contribution revenue should Public College report in its statement of activities? 

 $75,000 

5

Clara Hospital, a private not-for-profit hospital, earned $250,000 of gift shop revenues and spent $50,000 on research during the year ended December 31, year 2. The $50,000 spent on research was part of a $75,000 contribution received during December of year I from a donor who stipulated that the donation be used for medical research. For the year ended December 31, year 2, what was the increase in unrestricted net assets from the events occurring during year 2? 

$250,000 

6

On the statement of operations for a nonprofit, nongovernmental hospital, which of the items below is included in the amount reported for "revenue and gains over expenses and losses" (the performance indicator)?

I. Unrealized loss on other than trading securities. The securities are included in unrestricted net assets.

II. Contribution received from donor which cannot be used until next year.

Neither I or II

7

Unrealized gains on investments which are permanently restricted as to use by donors are reported by private, nonprofit hospital on the 

Statement of changes in net assets.

8

On December 31, year I, Royal Haven, a voluntary health and welfare organization, received a pledge from a donor who stipulated that $1,000 would be given to the organization each year for the next 5 years, starting on December 31, year I. For the year ended December 31, year I, Royal Haven should report, on its statement of activities,

 

Temporarily restricted revenues valued at present value of an annuity due for 5 periods. 

9

Lea Meditators is a not-for-profit religious organization. A storm broke glass windows in Lea's building. A member of Lea's congregation, professional glazier, replaced the windows at no charge. In Lea's statement of activities, the breakage and replacement of the windows should 

Be reported as an increase in both expenses and contributions.

10

On the statement of activities for nongovernmental, not-for-profit organization, expenses should be deducted from 

Unrestricted revenues and other additions.

11

SFAS 117 , Financial Statements of not-for-Profit Organizations, focuses on 

Basic information for the organization as a whole.

12

Arkin Corp. is a nongovernmental not-for-profit organization involved in research. Arkin's statement of functional expenses should classify which of the following as support services?

a. Salaries of fund-raisers for funds used in research.

b. Salaries of staff researchers involved in research.

c. Costs of equipment involved in research.

d. Costs of laboratory supplies used in research.

Salaries of fund-raisers for funds used in research. 

13

Scarbrough Hospital, nonprofit hospital affiliated with Scarbrough University, received the following cash contributions from donors during the year ended December 31, year I:

Contributions restricted by donors for research $ 75,000

Contributions restricted by donors for capital

acquisitions                                                         225,000

Neither of the contributions was spent during year I; however, during year 2, the hospital spent the entire $75,000 contribution on research and the entire $225,000 contribution on a capital asset which was placed into service during the year. On the hospital's statement of operations for the year ended December 31, year 2, what total amount should be reported for "net assets released from restrictions"? 

$300,000

14

A private not-for-profit college should prepare statement of financial position and which of the following financial statements?

I. Statement of activities.

II. Statement of functional expenses.

III. Statement of cash flows. 

I and III

15

Terry, an auditor, is performing test work for a not-for -profit hospital.  Listed below are components of the statement of operations.

Revenue relating to charity care             $100,000 

Bad debt expense                                      70,000

Net assets released from restrictions          50,000

used for operations

Other revenue                                             80,000 

Net patient service revenue (includes         500,000

revenue related to charity care)

What amount would be reported as total revenues, gains, and other support on the statement of operations? 

$530,000

16

A nongovernmental, not-for-profit organization received the following donations of corporate stock during the year:

                                                           Donation I    Donation 2

Number of shares                                 2,000         3,000

Adjusted basis                                     $8,000        $5,500

Fair market value at time of donation     8,500          6,000

Fair market value at year-end                10,000          4,000

What net value of investments will the organization report at the end of the year? 

$14,000

17

Which of the following assets of nongovernmental not-for-profit charitable organization must be depreciated?

a. Land valued at $1 million being used as the site of the new senior citizen home.

b. A freezer costing $150,000 for storing food for the soup kitchen.

c. A bulk purchase of $20,000 of linens for its nursing home.

d. Building costs of $500,000 for construction in progress for senior citizen housing. 

A freezer costing $150,000 for storing food for the soup kitchen.

18

Hope United, voluntary health and welfare organization, received the following contributions in year I:

I. $500 from donors who stipulated that the money not be spent until year 2.

II. $1,000 from donors who stipulated the contributions be used for the acquisition of equipment, none of which was acquired in year.

How would the above events affect the following at year-end December 31, year I?

       Temporarily restricted net assets   Revenues

a.     $1,000                                           $ 1,000

b.     $1,500                                           $ 1,500

c.      $0                                                 $0

d.     $500                                             $ 1,500

$1,500      $1,500

19

During year I, Jones Foundation received the following support:

A cash contribution of $875,000 to be used at the board of directors' discretion;

A promise to contribute $500,000 in year I from supporter who has made similar contributions in prior periods;

Contributed legal services with value of $100,000, which Jones would have otherwise purchased.

At what amounts would Jones classify and record these transactions?

        Unrestricted revenue   Temporarily restricted revenue

a.      $1,375,000                    $0

b.      $ 875,000                     $500,000

c.      $ 975,000                     $0

d.      $ 975,000                     $500,000

$ 975,000                     $500,000

20

Which of the following transactions would result in an increase in unrestricted net assets for the year ended December 31, year I?

I. A private, not-for-profit hospital earned interest on investments which were board-designated.

Il. A voluntary' health and welfare organization received unconditional promises to give (pledges) which will not be received until the beginning of year 2.

The donors placed no restrictions on their donations.

I only

21

Payne Co. prepares its statement of cash flows using the indirect method. Payne's unamortized bond discount account decreased by $25,000 during the year. How should Payne report the change in unamortized bond discount in its statement of cash flows? 

As an addition to net income in the operating activities section. 

22

Gridiron University is a private university. A successful alumnus has recently donated to Gridiron for the purpose of funding a "center for the study of sports ethics." This donation is conditional upon the university raising matching funds within the next 12 months. The university administrators estimate that they have a chance of raising the additional money. How should this donation be accounted for? 

As refundable advance.

23

On December 31, year I, Hope Haven, a voluntary health and welfare organization, received a pledge from a donor who stipulated that $1,000 would be given to the organization each year for the next 5 years, starting on December 31, year 2. Present value factors at for 5 periods are presented below.

Present value of an ordinary annuity for 5 periods at 6 %  4.21236 

Present value of an annuity due for 5 periods at 6% 4.46511

For the year ended December 31, year I, Hope Haven should report, on its statement of activities, 

Temporarily restricted revenues of $4,212. 

24

A statement of functional expenses is required for which one of the following private nonprofit organizations?

a. Performing arts organizations.

b. Hospitals.

c. Colleges.

d. Voluntary health and welfare organizations.

 Voluntary health and welfare organizations.

25

Albert University, private not-for-profit university, had the following cash inflows during the year ended June 30, year I:

I. $500,000 from students for tuition.

Il. $300,000 from a donor who stipulated that the money be invested indefinitely.

Ill. $100,000 from a donor who stipulated that the money be spent in accordance with the wishes of Albert's governing board.

On Albert University's statement of cash flows for the year ended June 30, year I, what amount of these cash flows should be reported as operating activities? 

$600,000

26

Tucker Hospital, a nonprofit hospital affiliated with Tucker University, received a donation of medical supplies during the year ended December 31, year I. The supplies cost the vendor $10,000 and had a selling price of $15,000 on the date they were donated. The vendor did not place any restrictions on how the supplies were to be used. During year I, all of the donated medical supplies were used. On the hospital's statement of operations for the year ended December 31, year I, how should the donation be reported? 

The donation should be included in both revenue and operating expenses in the amount of $15,000

27

A nonprofit, private hospital should report its health care receivables at net realizable value on the balance sheet. Which of the following allowances would be deducted from the hospital's gross receivables from health care services to determine their net realizable value?

I. Allowance for u ncollectible accounts.

Il. Allowance for contractual adjustments.

Ill. Allowance for employee discounts. 

I, II, and III

28

On December 30, year I, the Board of Trustees of Berry College, a private not-for-profit college, designated of unrestricted net assets for the construction of an addition to its science building. What effect does this designation have on the college's unrestricted and temporarily restricted net assets which are reported on the college's statement of financial position at December 31, year I?    

    Unrestricted net assets   Temporarily restricted net assets

a.  No effect                         Increase

b.  Decrease                        Increase

c.  Decrease                        No effect

d.  No effect                        No effect 

No effect                        No effect 

29

Community Enhancers, nongovernmental not-for-profit organization, received the following pledges:

Unrestricted                            $400,000 

Restricted for capital additions   300,000

All pledges are legally enforceable. However, Community's experience indicates that 5% of all pledges prove to be uncollectible. What amount should Community report as pledges receivable, net of any required allowance account? 

$665,000 

30

In April year I, Delta Hospital purchased medicines from Field Pharmaceutical Co. at a cost of $5,000. However, Field notified Delta that the invoice was being canceled and that the medicines were being donated to Delta. Delta should record this donation of medicines as

Other operating revenue of $5,000. 

31

A nongovernmental not-for-profit animal shelter receives contributed services from the following individuals valued at their normal billing rate:

Veterinarian provides volunteer animal care               $8,000

Board members volunteer to prepare bocks for audit   4,500 

Registered nurse volunteers as receptionist                 3,000

Teacher provides volunteer dog walking                      2,000

What amount should the shelter record as contribution revenue? 

$12,500

32

How should nongovernmental not-for-profit organization report depreciation expense in its statement of activities? 

It should be included as a decrease in unrestricted net assets.

33

A nongovernmental not-for-profit organization's statement of activities is similar to which of the following for-profit financial statements?

a. Statement of retained earnings.

b. Balance sheet.

c. Income statement.

d. Statement of cash flows. 

Income statement. 

34

On December 20, year I, United Appeal, a voluntary health and welfare organization, received a donation of computer equipment valued at $25,000 from a local computer retailer. The equipment is expected to have a useful life of three years. The donor placed no restrictions on how long the computer equipment was to be used, and united has an accounting policy which does not imply a time restriction on gifts of long-lived assets. On United's statement of activities prepared for the year ended December 31, year I, the donation of computer equipment should be reported 

As an increase in unrestricted net assets. 

35

The Turtle Society, a nongovernmental not-for-profit organization, receives numerous contributed hours from volunteers during its busy season. Chris, a clerk at the local tax collector's office, volunteered ten hours per week for 24 weeks transferring turtle food from the port to the turtle shelter. His rate of pay at the tax office is $10 per hour, and the prevailing wage rate for laborers is $6.50 per hour. What amount of contribution revenue should Turtle Society record for this service?

$0

36

Elizabeth Hospital, nonprofit hospital affiliated with religious group, should prepare which of the following financial statements?

a. Statement of changes in net assets

b. Statement of operations 

c. Statement of changes in net assets and Statement of operations

d. Neither

Statement of changes in net assets and Statement of operations

37

The governing board of Smithson Hospital, a nonprofit hospital affiliated with a religious organization, acquired 100 EMI Company bonds for $103,000 on June 30, year I. The bonds pay interest on June 30 and December 30. On December 31, year I, interest of $3,000 was received from EMI, and the fair value of the BMI bonds was $105,000. The governing board acquired the EMI bonds with cash which was unrestricted, and it classified the bonds as trading securities at December 31, year I, since it intends to sell all of the bonds in January year 2. As a result of the investment in EMI bonds, What amount should be included in revenue, gains, and other support on the statement of operations for the year ended December 31, year I?

 $5,000 

38

For private, not-for-profit organization, when is donor's conditional promise to give considered to be unconditional? 

When the possibility that the condition will not be met is remote. 

39

Hospital, Inc., not-for-profit organization with no governmental affiliation, reported the following in its accounts for the current year ended December 31:

Gross patient service revenue from all services

provided at the established billing rates of the

hospital (note that this figure includes charity

care of $25,000)                                               $775,000

Provision for bad debts                                           15,000 Difference between established billing rates

and fees negotiated with third-party payors

(contractual adjustments)                                         70,000

What amount would the hospital report as net patient service revenue in its statement of operations for the current year ended December 31?

$680,000 

40

Russell Hospital, a nonprofit hospital affiliated with private university, provided $250,000 of charity care for patients during the year ended December 31, year I. The hospital should report this charity care 

Only in the notes to the financial statements for year I.

41

Is the recognition of depreciation expense required for public colleges and private not-for-profit colleges?

a. Private

b. Neither

c. Both

d. Public

Both

42

During the current year, the local humane society, a nongovernmental not-for-profit organization, received a $100,000 permanent endowment from Cobb. Cobb stipulated that the income must be used to care for older horses that can no longer race. The endowment reported income of $8,000 in the current year. What amount of unrestricted contribution revenue should the humane society report for the current year?

$0

43

In not-for-profit organization, which of the following should be included in total expenses? 

a. Grants to other organizations and Depreciation

b. Grants to other organizations

c. Neither

d. Depreciation

Grants to other organizations and Depreciation

44

Nickels Hospital, nonprofit hospital affiliated with religious group, reported the following information for the year ended December 31, year I:

Gross patient service revenue at the hospital's full

established rates                                                    $860,000 

Bad debts expense                                                     10,000 

Contractual adjustments with third-party payors        100,000 

Allowance for discounts to hospital employees          35,000

On the hospital's statement of operations for the year ended December 31, year I, what amount should be reported as net patient service revenue? 

$725,000

45

A statement of financial position, which reports unrestricted, temporarily restricted, and permanently restricted net assets, is required for which one of the following organizations?

I. A public university.

Il. A private, not-for-profit hospital. 

II Only

46

Which of the following causes reporting reclassification?

I. Expiration of donor-imposed conditions.

Il. Expiration of donor-imposed restrictions. 

II Only

47

An unrestricted cash contribution should be reported in nongovernmental not-for-profit organization's statement of cash flows as an inflow from 

Operating activities.

48

A private not-for-profit hospital had the following cash flows for the year ended December 31, year I:

Cash received from MediCader Insurance

for patient services rendered                       $75,000

Cash received from tuition for interns'

educational program                                    $80,000

Cash received as unrestricted interest

revenue                                                        $30,000

Cash received for permanent investment      $50,000      

What amount from the above cash flows should be reported as financing activities on the hospital's statement of cash flows?

$ 50,000

49

United Ways, a voluntary health and welfare organization, received a contribution of $10,000 from a donor in year I. The donor did not specify any use restrictions on the contribution; however, the donor specified that the donation should not be used until year 2. The governing board of united Ways spent the contribution in year 2 for fund-raising expenses. For the year ended December 31, year I, United Ways should report the contribution on its 

Statement of activities as temporarily restricted revenue

50

Which of the following statements is(are) correct about charity care provided by nonprofit, nongovernmental hospital?

I. Charity care represents health care services that are provided but are never expected to result in cash flows.

Il. Sad debts expense should include provision for charity care. 

I Only

51

For a private not-for-profit college, net assets which are reported as either temporarily restricted or permanently restricted can be expended or invested according to the wishes of

I. External donors a nd grantors.

Il. The governing board of the college.

III The president of the college

I only

52

RST Charities received equities securities valued at $100,000 as an unrestricted gift. During the year, RST received $5,000 in dividends from these securities; at year-end, the securities had a fair market value of $110,000. By what amount did these transactions increase RST's net assets? 

$115,000

53

The board of trustees of Blue College, a private not-for-profit college, established a $500,000 quasi endowment on September I, year I. On the college's statement of financial position at December 31, year I, the assets in this quasi endowment should be included in Which of the following classifications? 

Unrestricted net assets. 

54

Simmons Hospital, nonprofit hospital affiliated with religious group, received the following cash contributions from donors during the year ended December 31, year I:

For capital acquisitions          $500,000

For permanent endowments    250,000

The cash received for capital acquisitions was used to acquire assets in year 2, while the cash received for the permanent endowment was used to acquire investments during year I. What effect did these cash contributions have on the amounts reported for cash flows from investing activities and cash flows from financing activities on the statement of cash flows for the year ended December 31, year I? 

    Cash flows from investing      Cash flows from financing

a.  Decrease $250,000              Increase $500,000

b.  Decrease $750,000              Increase $750,000

c.   Decrease $250,000             Increase $250,000 

d.  Decrease $250,000              Increase $500,000 

Decrease $750,000              Increase $750,000

55

 During year I, Margaret Billingsley, a prominent art collector, donated several items in her collection to the Darwin Museum, a private, not-for-profit organization. Ms. Billingsley stipulated that her contribution be shown to the public, that it should be preserved, and not be sold. Darwin's accounting policy is to capitalize all donations of art, historical treasures, and similar items. On the date of donation, what was the effect of Ms. Billingsley's donation on Darwin's financial statements? 

Permanently restricted net assets increased.

56

A private not-for-profit college has both regular and term endowments. On the college's statement of financial position, how should the net assets of each type of endowment be reported?  

     Term Endowments          Regular Endowments

a.  Temporarily restricted      Permanently restricted

b.  Permanently restricted     Permanently restricted

c.  Unrestricted                     Temporarily restricted

d.  Temporarily restricted      Temporarily restricted 

Temporarily restricted      Permanently restricted

57

Mary lou College, private not-for-profit college, received the following contributions during year I:

I. $25,000 from alumni for faculty research. Only $20,000 was actually used in year I.

II $35,000 from a donor who stipulated that the donation not be spent until July of year 2, On the statement of activities for the year ended December 31, year I, what will be the increase in temporarily restricted net assets? 

$40,000 

58

Kerry College, a private not-for-profit college, received $25,000 from Ms. Mary Smith on April 30, 20XI. Ms. Smith stipulated that her contribution be used to support faculty research during the fiscal year beginning on July I, 20XI. On July I5, 20X1, administrators of Kerry awarded research grants totaling $25,000 to several faculty in accordance with the wishes of Ms. Smith. For the year ended June 30, 20XI, Kerry College should report the $25,000 contribution as

Temporarily restricted revenues on the statement of activities.

59

Carlson Hospital, nonprofit hospital affiliated with Carlson College, had the following cash receipts for the year ended December 31, year I :

Collections of health care receivables    $850,000

Contribution from donor to establish

term endowment                                       150,000 

Tuition from nursing school                         50,000

Dividends received from investments

in permanent endowment                            75,000

The dividends received are restricted by the donor for hospital building improvements. No improvements were made during year I. On the hospital's statement of cash flows for the year ended December 31, year I, what amount of these cash receipts would be included in the amount reported for net cash provided (used) by operating activities?

$900,000

60

The statement of operations for a private, nonprofit hospital should include a performance indicator which indicates the results of operations for period. Which of the following items would be included in a hospital's performance indicator reported on the statement of operations?

I. Proceeds from sales of cafeteria meals and guest trays to employees, medical staff, and visitors.

Il. Net assets released from restrictions used for operating expenses.

I and II

61

A statement of financial position, which reports unrestricted, temporarily restricted, and permanently restricted net assets, is required for which one of the following organizations?

I. A public university.

Il. A private, for-profit hospital. Iand Il. 

Neither I or II

62

Albert University, a private, not-for-profit university, has donor-restricted permanent endowment funds Which include investments in equity securities. These equity securities all have readily determinable fair values because they are all traded on national security exchanges. Most of the equity investments represent between 1% and 3% of the common stock of the investee companies; however, a few of Albert's investments permit the university significant influence over the operating and financing policies of the investee companies. How should Albert report these equity securities on its statement of financial position?

Equity securities: 1% to 3% ownership  Equity securities: Significant                                                                influence

a. Fair value                                            Fair value 

b. Fair value                                            Use equity method

c. Lower of cost or market                      Fair value

d. Fair value                                           Lower of cost or market 

 Fair value                                            Use equity method

63

A private not-for-profit college should prepare statement of financial position and which of the following financial statements?

I. Statement of activities.

Il. Statement of changes in fund balances.

Ill. Statement of cash flows.

I and III

64

The governing board of Crestfallen, a voluntary health and welfare organization, acquired equity securities of SMZ Company at a cost of $35,000 on May I, year I. The governing board used unrestricted net assets to acquire this investment, and it intends to use the income from its investment in SMZ, as well as other investments, to acquire much needed computer equipment for the organization. The investment in the equity securities of SMZ Company, Which is listed on a national stock exchange, represents less than a 1% interest in the company. On November 15, year I, Crestfallen received $1,000 of dividends from SMZ, and the fair value of the SMZ equity securities was $42,000 on December 31, year I. As a result of Crestfallen's investment in SMZ Company, the statement of activities for the year ended December 31, year I, would report an increase of 

8,000 in unrestricted net assets.

65

Mary Egbart promised Columbus College, a private, not-for-profit college, that she would provide of the funds needed to construct a new performing arts center, if the college could get the remaining of the funds needed from other donors by July I, year 2. The promise was made in year I. At December 31, year I, the governing board of the college had received donations from other donors for approximately I5% of the cost of the new center and believed that the probability of not getting the remaining of the necessary funds was remote. For the year ended December 31, year I, Ms. Egbart's promise would

Be reported as an increase in temporarily restricted net assets on the statement of activities. 

66

Janna Association, a nongovernmental not-for-profit organization, received cash gift with the stipulation that the principal be held for at least 20 years. How should the cash gift be recorded? 

 A temporarily restricted asset.

67

A not-for-profit voluntary health and welfare organization should report contribution for the construction of new building as cash flows from which of the following in the statement of cash flows? a.

a. Operating activities. 

b. Investing activities.

d. Financing activities

d. Capital financing activities. 

 Financing activities. 

68

The Pel Museum is not-for-profit organization. If Pel received contribution of historical artifacts, it need not recognize the contribution if the artifacts are to be sold and the proceeds used to 

Acquire other items for collections.

69

On December 5, year I, Jones Heating and Air Conditioning Service repaired the heating system in the building occupied by Good Hope, a voluntary health and welfare organization. An invoice for $1,500 was received by Good Hope for the repairs on December 15, year I. On December 30, year I, Jones notified Good Hope that the invoice was canceled and that the repairs were being donated without charge. For the year ended December 31, year I, how should Good Hope report these contributed services? 

As an increase in unrestricted revenues and as an increase in expenses on the statement of activities. 

70

The statement of cash flows is required for which of the following entities?

I. Private, not-for-profit hospital.

Il. Private, not-for-profit college.

Ill. Governmental police station. 

I and II

71

Which of the following financial statements of private, nonprofit hospital reports the changes in unrestricted, temporarily restricted, and permanently restricted net assets for a time period?

a. Balance sheet and Statement of Operations

b. Balance sheet

c. Statement of Operations

d. Neither

Neither

72

Which of the following should normally be considered ongoing or central transactions for not-for-profit hospital?

I. Room nd board fees from patients.

Il. Recovery room fees.

Both I and II

73

For the year I fall semester, Brook University assessed its students $4,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only $3,700,000 was expected to be realized because tuition remissions of $80,000 were allowed to faculty members' children attending Brock and scholarships totaling $220,000 were granted to students who were not required to perform services for the student aid. What amount should Brook include in educational and general current funds revenues from student tuition and fees?

$3,780,000

74

 A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase truck. In which section of the organization's statement of cash flows should the transaction be reported? 

 In cash inflow from financing activities and cash outflow from investing activities

75

How should operating expenses for nongovernmental not-for-profit organization be reported? 

Change in unrestricted net assets. 

76

During the current fiscal year, Foxx, a nongovernmental not-for-profit organization, received unrestricted pledges of $300,000. Of the pledged amount, $200,000 was designated by donors for use during the current year, and $100,000 was designated for next year. Five percent of the pledges are expected to be uncollectible. What amount should Foxx report as restricted support (contributions) in the statement of activities for the current year? 

$95,000 

77

 During the current year, Mill Foundation, a nongovernmental not-for-profit organization, received $100,000 in unrestricted contributions from the general public. Mill's board of directors stipulated that $75,000 of these contributions would be used to create an endowment. At the end of the current year, how should Mill report the $75,000 in the net assets section of the statement of financial position? 

Unrestricted.