Exam 12: Not-For-Profit Organizations

Restricted contributions may be reported as unrestricted if the restriction has been met in the same period as the contribution is made.

Revenues ofA.not-for-profit organization should be reported as

The Nature Conservatory, a not-for-profit entity, engaged in a fundraising 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 the Nature Conservatory was able to raise an additional $1.5 million from other sources.What entry should the Nature Conservatory make at the time of the $1 million pledge?

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?

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. -In 2011, the change in temporarily restricted net assets is

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

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

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

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. -In 2011, the change in unrestricted net assets is

Mary's Extended Care Center, a not-for-profit entity, enjoys the services of a group of high school age people who each agree to work three afternoons a week for three hours each afternoon performing a variety of patient-related services such as writing letters for those who are unable to do so, delivering mail to the patient rooms, and pushing wheel-chair patients across the grounds.The services rendered by these young people enhance the quality of life for the residents.They could not be provided if they were not donated because there are not enough resources to do so.The past year the young people donated 5000 hours in total.The services would have cost $6.00 per hour if they had been purchased but they were worth $10 an hour to St.Mary's.What is the amount of contributed revenue that should be recognized by St.Mary's related to these services?

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

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 temporarily restricted net assets in 2010 as a result of the fundraising drive is

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 2011 Games 50 volunteers provided a total of 1000 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 2011 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 2011?

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

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

Revenue from an exchange transaction may be classified as an increase in which class of net assets?

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 should be a UNRESTRICTED FUND Resources released from restriction \1 25,000 Cash \1 25,000 RESTRICTED FUND Fixed assets \1 50,000 Cash \2 5,000 Resources released from restriction \1 25,000 b RESTRICTED FUND Resources released from restriction \1 25,000 Cash \1 25,000 UNRESTRICTED FUND Fixed assets \1 50,000 Resources released from restriction \1 25,000 Cash \2 5,000 c UNRESTRICTED FUND Fixed assets \1 50,000 Cash \1 50,000 d RESTRICTED FUND Fixed assets \1 50,000 Cash \1 50,000

The characteristic that most clearly distinguishes a contribution from an exchange transaction is which of the following?

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

During the year, a not-for-profit entity received $30,000 in dividends and $24,000 in interest on its investment portfolio.The entity also accrued $6,000 in interest on the portfolio.The increase in fair value of the portfolio during the year was $8,000.How much should the entity report for investment earnings during the year?