Exam 12: Not-For-Profit Organizations

A donor pledges $100,000 to the Shakespeare Foundation to be used only to support the summer Shakespeare Theater-an event that has been held every summer for 38 years.This is an example of a

Restricted gifts to not-for-profit organizations

Grace Church,a not-for-profit entity,operates a school in connection with the church.This year members of the church decided to construct a new wing on the school with six classrooms.The church hired an architect and a construction supervisor.The bulk of the labor for construction was donated by church members who were willing workers but not necessarily skilled carpenters.Materials for the construction cost $600,000 and the paid labor was $200,000.The fair value of the completed building is $2 million.When the building is completed what should be the balance in the asset account "Building" and the account "Contributed revenue"?

A not-for-profit art museum that has elected not to capitalize its art collection receives a donation of a rare piece of Tlinket Indian art.The donor paid $8,000 for the piece several years ago.Today the piece has an estimated fair value of $50,000.What entry should the art museum make upon receipt of this donation?

"Net assets released from restriction" for a not-for-profit organization is comparable to which of the following for a government?

When should a not-for-profit entity recognize pledge revenue that is contingent upon raising a matching amount?

Not-for-profits generally should not recognize as revenues contributions that they have agreed to pass along to other specific beneficiaries.

FASB Statement No.95 requires not-for-profits to use the direct method in their statements of cash flows.

FASB standards require not-for-profit organizations to classify their resources into three categories: unrestricted,temporarily restricted,and permanently restricted.

Whether a not-for-profit's resources are classified as restricted or unrestricted depends on the presence or absence of donor stipulations.

Which of the following characteristics most clearly distinguishes an exchange transaction from a contribution?

Revenues of a not-for-profit organization should be reported as

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

United Charities accepted a contribution from a donor and agreed to transfer the assets to Aid for Friends,a not-for-profit that provides temporary shelter to the homeless.United Charities should debit cash or other assets and credit

The FASB requires external financial reports to provide information about

During the annual fund-raising drive,the Cancer Society raised $900,000 in pledges of financial support for general operations.By fiscal year-end,the society had collected $600,000 of the pledges.The society estimates that 10% of the remaining pledges will be uncollectible.The NET amount of revenue the society should recognize during the current year from this pledge drive is

Expenses should be classified as unrestricted or temporarily restricted,consistent with the classification of the resources used to finance them.

The Save the Animals Foundation received a gift of $500,000 from a donor who wanted the gift used to acquire habitat for endangered snails.The money may be invested but all earnings are restricted to habitat acquisition.During the year the entire gift was invested in corporate securities.At year-end,the securities had a value of $501,000.The appropriate way to recognize the change in fair value is

Not-for-profit organizations should report interest and dividends earned and restricted for long-term purposes in which of the following cash flows categories?