Exam 12: Not-For-Profit Organizations

Simplex Games,a not-for-profit entity organized to provide athletic competition opportunities for high school students,utilizes a number of volunteers in carrying out its mission.At the 2014 Games 50 volunteers provided a total of 1,000 hours of service performing tasks such as picking up litter and delivering water to the athletes.A local CPA firm donates its services to prepare the annual tax return and other federal and state required paperwork which must be filed to maintain its status as a tax-exempt organization.During 2014 the CPA firm provided 50 hours of service.If purchased,the CPA services would have cost $60 per hour and the game workers would have cost $6 per hour.How much contributed service revenue should Simplex Games recognize in 2014?

Music Lovers Foundation,a not-for-profit governed by an independent board,was founded to support the Northern State University Choir until such time as the state legislature adequately funds the choir.When the choir is adequately funded by appropriation,the Foundation may direct resources to other music projects that it deems acceptable.When Music Lovers accepts a contribution from a donor it should debit cash and/or other assets and credit

FASB Statement No.117 directs that revenues and expenses be reported in a statement of financial position.

The account titled "Resources released from restriction" is reported by a "restricted fund" as a

The primary source of authoritative accounting and financial reporting guidance for a private college is the AICPA.

The Midwest Circulatory Diseases Society placed an advertisement in prominent publications in the region.The advertisement provided information about symptoms of the diseases and offered practical advice for controlling their immediate effects.The society's accountants estimate that about 75 percent of the advertising copy was devoted to information about the disease and the remainder was an appeal for funds.The advertisement cost $20,000.Using the physical units method of separating joint costs,how much of the cost of the advertisement should be reported as program costs?

Unlike governments,not-for-profits should not recognize contributions of art collections as revenue unless they capitalize them.

The National Association for the Preservation of Wildlife received $10,000 from a benefactor to support the overall objective of the organization.This amount will be recognized as revenue

The increase in unrestricted net assets in 2013 as a result of the fund-raising drive is

Open Air Conservatory,a not-for-profit entity,held a fund-raising drive to raise money to buy land to provide a habitat for the endangered Sleepy Eagle.A donor pledged $1 million to the project provided that Open Air Conservatory was able to raise an additional $1.5 million from other sources.What entry should Open Air Conservatory make at the time of the $1 million pledge?

The FASB requires that all not-for-profit organizations report expenses

A not-for-profit would include which of the following financial statements in its basic financial statements?

According to AICPA guidance,a not-for-profit organization X)is required to consolidate a related not-for-profit organization Y)in its financial statements when

Expenses incurred by not-for-profit organizations should be reported as

In accounting for investments,not-for-profits,like businesses,must report their investments at fair value and classify the investments as trading,or available-for-sale,or held-to-maturity.

All not-for-profit organizations,including city-owned museums and two-year community colleges,must adhere to FASB accounting and financial reporting standards.

In a prior year,United Charities received a $125,000 gift to be used to acquire vans to provide transportation for physically challenged adults.During the current year,United acquired two vans at a cost of $75,000 each.The appropriate entryies)to record the acquisition is a) UNRESTRICTED FUND Resources released from restriction \ 125,000 Cash \ 125,000 RESTRICTED FUND Fixed assets \ 150,000 Cash \ 25,000 Resources released from restriction \ 125,000 b) RESTRICTED FUND Resources released from restriction \ 125,000 Cash \ 125,000 UNRESTRICTED FUND Fixed assets \ 150,000 Resources released from restriction \ 125,000 Cash \ 25,000 c) UNRESTRICTED FUND Fixed assets \ 150,000 Cash \ 150,000 d) RESTRICTED FUND Fixed assets \ 150,000 Cash \ 150,000

In a not-for-profit organization,wages and salaries should be recorded

Native Art Museum,a not-for-profit entity that elects not to capitalize its collection items,purchased for $10,000 a wonderful totem pole for display near the door of the museum.As a result of this transaction,which of the following entries should be made?

The FASB requires the balance sheets of not-for-profits to display