Not-for-profit Organizations

Question 1

Not-for-profits use ______ standards

Answer 1

FASB

Question 2

Not-for-profits use the ____ _____ basis of accounting

Answer 2

full accrual

Question 3

The overall emphasis for not-for-profit financial statements is on ______ information for the organization as a whole

Answer 3

basic

Question 4

3 required financial statements for not-for-profits:

Answer 4

Statement of financial position, statement of activities, and statement of cash flows

Question 5

Voluntary health and welfare organizations are required to submit a 4th statement which is;

Answer 5

statement of functional expenses

Question 6

Net assets in the statement of financial position is synonymous with

Answer 6

equity

Question 7

Three categories in net assets:

Answer 7

PUT

permanently restricted, unrestricted, temporarily restricted

Question 8

Internal board designated funds are considered ___________

Answer 8

unrestricted

Question 9

The statement of activities shows the changes in ______ net assets, ______ net assets, and ______ net assets

Answer 9

temporarily restricted, permanently restricted, unrestricted

Question 10

Contributions with donor imposed restrictions are recorded as __________ revenue

Answer 10

restricted

Question 11

When a donor restriction is satisfied, a _________ is reported on the statement of activities

Answer 11

reclassification

Question 12

Expenses are recorded as decreases in ____________ net assets

Answer 12

unrestricted

Question 13

two types of expenses:

Answer 13

program services & support services

Question 14

Changes in net assets is similar to:

Answer 14

net income

Question 15

In the statement of cash flows, certain restricted contributions may be recorded as _________ activities

Answer 15

financing

Question 16

Revenues typically represent ______ transactions

Answer 16

exchange

Question 17

Other support typically represents operating income that is _______

Answer 17

donated

Question 18

Cash contributions should be recognized as revenues or gains when they are _________

Answer 18

received

Question 19

Unconditional promises (pledges) is a contribution and is recorded as revenue at its fair value when the promise is ________

Answer 19

made

Question 20

Conditional promises depend on an occurrence of a future and uncertain event so revenue is recognized when the conditions are _________ ____

Answer 20

substantially met

Question 21

Multi-year pledges are recorded at NPV at the date the pledge is ________

Answer 21

made

Question 22

The current portion of a multi year pledge is recognized as ___________ and the future amounts are recognized as ________ __________ revenue

Answer 22

revenue; temporarily restricted

Question 23

Conditional pledges are recorded as ______

Answer 23

liabilities

Question 24

Donated services should be recorded as __________ revenue and __________ at fair value

Answer 24

contribution; expensed

Question 25

Donated materials are recorded at ____________

Answer 25

fair value

Question 26

Unconditional promises to contribute in the future are reported as _____ _____ support

Answer 26

temporarily restricted

Question 27

JE to record unconditional promise

Answer 27

DR: pledge receivable - temporarily restricted CR: Allowance for doubtful accounts CR: Contributed revenue - temporarily restricted

Question 28

Consist of resources received by the not-for-profit over which the not-for-profit has little or no discretion or variance power

Answer 28

Agency transactions

Question 29

Gifts-in-kind (non-cash contributions) are measured at their ___________

Answer 29

fair value

Question 30

Reciprocal transfers in which each party receives and sacrifices something of approximately equal value are termed:

Answer 30

exchange transactions

Question 31

Amount transferred - fair value dues/purchase =

Answer 31

contribution revenue

Question 32

If there is no variance power, the NFP (acting as an agent) records a:

Answer 32

liability

Question 33

If the NFP (acting as an agent) is granted variance power, a ______ _______ is recorded

Answer 33

contribution revenue

Question 34

Gains and losses on investments are reported in the statement of activities as increases or decrease in _____ net assets

Answer 34

unrestricted

Question 35

A NFP should recognize the change in fair value of all derivatives in the period of _______

Answer 35

change

Question 36

Dividends, interest, and other investment income are reported in the period _____ as increases in _____ net assets

Answer 36

earned; unrestricted

Question 37

Fund accounting is only appropriate for _________ reporting of NFPs

Answer 37

internal

Question 38

In a permanent endowment, the _______ is not permitted to be spent

Answer 38

principal

Question 39

A term endowment must be held for a _______ ____

Answer 39

specified term

Question 40

Quasi-endowments are designations of _________ net assets and are determined by the internal governing board

Answer 40

unrestricted

Question 41

Student tuitions and fees for colleges are reported at their _______ amount

Answer 41

gross

Question 42

Gross revenue from tuition and fees =

Answer 42

assessed student tuition and fees - cancelled classes

Question 43

Scholarships and fellowships are reported as ________

Answer 43

expenses

Question 44

3 types of revenue from health care organizations:

Answer 44

patient service revenue; other operating revenue; non-operating revenue

Question 45

Patient service revenue is accounted for on a _____ basis

Answer 45

gross

Question 46

Charity care is _________ as a receivable or as revenue

Answer 46

not recorded

Question 47

Patient service revenue =

Answer 47

gross patient service revenue - charitable services

Question 48

Donated services are recorded under _______ ________ for health care organizations

Answer 48

non-operating revenue

Question 49

Voluntary health and welfare organizations depend upon _________________ from the general public to support the activities of the organization

Answer 49

contributions and pledges

Question 50

Donated property is recorded at its fair market value and is recognized as ________

Answer 50

support

Question 51

Grants to other organizations are recorded as ______

Answer 51

expenses

Question 52

_______ activities include proceeds from the sale of works of art or purchases of works of art

Answer 52

investing

Question 53

Cash contributions restricted by the donor for long-term purposes must be reported as a cash inflow in the ________ activities section of the statement of cash flows, segregated from other ________ activities.

Answer 53

financing (2)