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Flashcards in NFP Accounting Deck (21):
1

Statement of Financial Position

Statement of Activities

Statement of Cash Flows

Statement of Functional Expense (Volunteer Health Organizations Only)

Not For Profit Accounting

2

Similar to Balance Sheet:

Assets
Liabilities
Net Assets
Unrestricted Assets
Permanently Restricted Assets
Temporarily Restricted Assets

Not For Profit Accounting

3

Similar to an Income Statement - organization - wide:

Revenues
Expenses - ONLY deducted from Unrestricted Revenues
Gains and Losses
Changes in Net Asset classes
Unrestricted
Permanently Restricted
Temporarily Restricted

Not For Profit Accounting

4

Both direct and indirect methods are OK

Operating Activities - Unrestricted Revenues and Unrestricted Expenses

Investing Activities

Financing Activities - Endowments and restricted contributions


Not For Profit Accounting

5

Volunteer Health Organizations

Not For Profit Accounting

6

Balance Sheet
Statement of Operations
Statement of Changes in Net Assets
Statement of Cash Flows
Financial Statement Notes

Not For Profit Accounting

7

Accrual basis of accounting is used

Only external parties can restrict the use of assets (permanent or temporary)

Assets earmarked internally by management are still classified as unrestricted

Not For Profit Accounting

8

No restrictions or conditions placed on entity in order to use the resources

Note: assets earmarked internally by management are still unrestricted

Not For Profit Accounting

9

Revenues on contributions are recognized in the year received - not the year the contribution is spent and are recorded at Fair Value on the date received

Not For Profit Accounting

10

If the organization would have otherwise paid for them

or

They increase the value of a non - monetary asset

Not For Profit Accounting

11

NO.

It is disclosed in the notes to the financial statements only.

Not For Profit Accounting

12

Classified as revenue in the current year only - multi - year future contributions fall under Temporarily Restricted.

Not For Profit Accounting

13

Expenses ONLY deducted from Unrestricted Revenues - not Temporary or Permanently Restricted Revenues/Assets

Not For Profit Accounting

14

Use is restricted to a future time - which could then convert to unrestricted - Class: Temp. Restricted Revenue

Unrestricted contributions promised (including multi - year contributions) - but not yet received are actually restricted by time and are therefore classified as Temporarily Restricted Assets - Multi - year contributions are recorded at the present value of the future contributions

Not For Profit Accounting

15

Use of investment is restricted - but income from investment could be either restricted or unrestricted

Must be under control of receiving entity (Quasi Endowment) in order to be recorded in unrestricted net assets

Otherwise - a memo entry is recorded

Not For Profit Accounting

16

Not recognized as assets or contribution revenue if they are held of display or education' or their sale results in the purchase of similar items

Not For Profit Accounting

17

Temporarily restricted assets are used before Unrestricted assets.

Not For Profit Accounting

18

Classified as a Liability

Promise to contribute assets pending on certain conditions being met

Becomes unconditional once the possibility that it won't happen is remote

Not For Profit Accounting

19

Fair Value is mostly used

Exception - Equity method used when significant influence exists

Not For Profit Accounting

20

As a reduction of revenue - netted against college's tuition

Not For Profit Accounting

21

Depreciation expense is allocated proportionately to various functions

Not For Profit Accounting