Exam 18: Accounting and Reporting for Private Not-For-Profit Organizations

Unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition of:

In this month, there were several patients that had no health insurance and due to their low income level, the hospital decided that $96,000 of receivables would not be collectible.Required:Prepare the necessary journal entry to reflect the decision to consider the $96,000 as charity care.

A local social worker, earning $14 per hour working for the state government, contributed 550 hours of time at no charge to the Sunrise Homeless Shelter, a voluntary health and welfare entity. If not for these donated services, an additional staff person would have been hired by the entity.Required:How should the Sunrise Homeless Shelter record the contributed services?

What are the objectives of accounting for a not-for-profit entity?

What is the main source of financial support for most voluntary health and welfare entities?

What are third-party payors? Why are their interests important in accounting for health care entities?

Which entry would be the correct entry to record that a not-for-profit entity collected $80,000 of amounts pledged and also wrote off $3,000 of amounts pledged that were previously estimated as amounts uncollectible?

During 2021, the Tigger Humane Society, a voluntary health and welfare entity, received cash donations of $765,000 and membership dues of $54,000. A member of the Humane Society donated services valued at $5,000 that would otherwise have been performed by a paid staff member. A pet food manufacturer donated dog food valued at $13,200.The Humane Society received a gift of $125,000, to be used for building a new animal shelter. Also during 2021, investments held by the Humane Society earned interest of $1,200.Required:Prepare a schedule showing the amount that the Tigger Humane Society should have recorded for contributions from public support for 2021, according to ASU 2016-14.

What financial statements would normally be prepared by a voluntary health and welfare entity?

During 2020, the Clifford Humane Society, a voluntary health and welfare entity, received cash donations of $912,000 and membership dues of $68,000. A member of the Humane Society donated services valued at $8,500 that would otherwise have been performed by a paid staff member. A pet food manufacturer donated dog food valued at $17,200. The Humane Society received a gift of $150,000, to be used in building a new animal shelter. Also during 2020, investments held by the Humane Society earned interest of $2,500.Required:Prepare a schedule showing the amount that the Clifford Humane Society should have recorded for contributions from public support for 2020.

When individuals are considering whether to make a donation to a not-for-profit entity, the answer to which of the following questions is not typically sought?

Which of the following topics are not included in the Form 990 which tax-exempt entities file to maintain their tax-exempt status?

Prior to ASU 2016-14, what are the three categories of net assets required by GAAP in reporting of a not-for-profit entity?

Which of the following types of health care entities follow FASB Accounting Standards Codification for preparing financial statements?

What term is often used by voluntary health and welfare entities as a category for resources received from contributions, as opposed to those from providing goods or services?

Which one of the following financial statements is not required by GAAP regarding a voluntary health and welfare entity?

What should Sterling Foundation report as program service expenses?

The Butler Center is a voluntary health and welfare entity. During 2020, unrestricted pledges of $880,000 were received by the Butler Center, sixty-five percent of which were fulfilled in 2020. Officials estimated that fifteen percent of the original amount of pledges will be uncollectible. The remainder of the amount expected to be collected from pledges will be received in 2021 (for use in 2021).Required:1) Show with appropriate amounts how the Butler Center would present the pledges on its Statement of Financial Position on the day the pledges are recorded in 2020.2) Show with appropriate amounts the effect on net assets the Butler Center would report for contributions for 2020.

For a not-for-profit entity, when is recognition of contributions of artworks and historical treasures not required?

What is the five-step progression that a health care entity must follow in recording revenues?