Exam 12: Not-For-Profit Organizations

The Friends of the Library FOL, a not-for-profit entity, received a gift restricted to acquisition of a special piece of the equipment used to restore books.Late last year FOL acquired the machine at a total cost of $19,000.The machine is estimated to have a useful life of eight years and a salvage value of $3,000.In what fund should FOL make the entry to record the depreciation for the current year?

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

FASB require the balance sheets of not-for-profits to display

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?

Which of the following entities should recognize depreciation expense on its operating statement?

During the current year a not-for-profit entity received a contribution of $100,000 to use for scholarships.In the current year the entity had already budgeted $400,000 for scholarships.During the current year, the entity disbursed $350,000 for scholarships.The amount the entity can consider as 'released from restriction' in the current year is

In the statement of activities, FASB Statement No.117 requires revenues to be reported as increases in one of the three categories of net assets, depending on donor-imposed restrictions; however, all expenses should be reported as decreases in unrestricted net assets.

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

During the annual fundraising drive, the Cancer Society raised $900,000 in pledges of financial support for their general operations.By the 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

Restricted gifts to not-for-profit organizations

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

Not-for-profit organizations report their cash flows in which of the following categories?

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"?

The account title "Resources Released from Restriction" is reported by an unrestricted "fund" as a

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

FASB Statement No.93 makes the recognition of depreciation on plant and equipment assets optional at the discretion of the not-for-profit.

Use the following information to answer Questions United Charities' annual fund raising drive in 2010 raised pledges of $1,200,000 of which $800,000 were collected in 2010 and $200,000 were collected in 2011.United Charities estimates $150,000 of the remaining pledges will never be collected. -The increase in unrestricted net assets in 2010 as a result of the fund raising drive is

The account title "Resources Released from Restriction" is reported byA.'restricted fund' as a

FASB requires external financial reports to provide information about

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 shall adequately fund 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