Question 1

The purpose of a statement of functional expenses is to

Accepted Answer

A)  Report on the net income of each program compared to that of supporting the programs. 
B)  Report on program expenses and supporting expenses. 
C)  Report on the natural expenses (object-of-expense),as well as program and support functions expenses. 
D)  Report on the cash flows of each program and that of supporting the programs. 
A)  Report on the net income of each program compared to that of supporting the programs. 
B)  Report on program expenses and supporting expenses. 
C)  Report on the natural expenses (object-of-expense),as well as program and support functions expenses. 
D)  Report on the cash flows of each program and that of supporting the programs.

Question 2

Donated services should be recorded as contributions by a nongovernmental,not-for-profit organization if material,and if they meet the recognition criteria set out by FASB.

Accepted Answer

A) True 
 B)False

Question 3

Similarity in the characteristics of nongovernmental not-for-profit (NFP)organizations and governmental NFP organizations can make it difficult to determine whether the NFP is nongovernmental or governmental in nature.

Accepted Answer

A) True 
 B)False

Question 4

A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on the

Accepted Answer

A)  Statement of activities. 
B)  Statement of financial position. 
C)  Statement of cash flows. 
D)  Statement of functional expenses. 
A)  Statement of activities. 
B)  Statement of financial position. 
C)  Statement of cash flows. 
D)  Statement of functional expenses.

Question 5

Depreciation expense in a not-for-profit organization should be

Accepted Answer

A)  Assigned to or allocated to the functions to which it relates. 
B)  Reported under the management and general function. 
C)  Disclosed in the notes to the financial statements. 
D)  Allocated to program but not support functions. 
A)  Assigned to or allocated to the functions to which it relates. 
B)  Reported under the management and general function. 
C)  Disclosed in the notes to the financial statements. 
D)  Allocated to program but not support functions.

Question 6

FASB requires that support from special events,if related to the central ongoing and major activities of the organization,and related direct costs,be reported at their gross amounts in the statement of activities rather than reporting the special events support net of direct costs.

Accepted Answer

A) True 
 B)False

Question 7

A voluntary health and welfare organization would report the account Provision for Uncollectible Pledges as which of the following?

Accepted Answer

A)  Expense. 
B)  Contra revenue. 
C)  Contra asset. 
D)  FASB allows management to determine its policy for reporting the Provision for Uncollectible Pledges. 
A)  Expense. 
B)  Contra revenue. 
C)  Contra asset. 
D)  FASB allows management to determine its policy for reporting the Provision for Uncollectible Pledges.

Question 8

Which of the following would be reported as an Asset with Restrictions on Use?

Accepted Answer

A)  A cash contribution for a program activity,such as diabetes research. 
B)  A cash contribution for a new building. 
C)  Cash restricted by debt covenants with lenders. 
D)  Cash restricted by the board for purchase of new computer equipment. 
A)  A cash contribution for a program activity,such as diabetes research. 
B)  A cash contribution for a new building. 
C)  Cash restricted by debt covenants with lenders. 
D)  Cash restricted by the board for purchase of new computer equipment.

Question 9

Museums and religious organizations must capitalize and report in their balance sheets assets such as works of art,historical treasures,historical archives,and similar collectible items if they are held for public inspection.

Accepted Answer

A) True 
 B)False

Question 10

In the current year,the not-for-profit organization (NFP)How to Read Government Financial Reports received both cash of $1,000 and pledges of $2,000 to be used for teaching citizens how to read government financial reports.During the year the organization spent $1,500 teaching citizens to read financial statements.Assuming the NFP has a policy of spending its restricted resources first,in the current year what amount of contributions can be reclassified as unrestricted?

Accepted Answer

A)  $1,000. 
B)  $1,500. 
C)  $2,000. 
D)  $3,000. 
A)  $1,000. 
B)  $1,500. 
C)  $2,000. 
D)  $3,000.

Question 11

A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year.In the organization's statement of activities prepared in conformity with FASB standards,the $10,000 would be reported as

Accepted Answer

A)  A deduction from program revenue. 
B)  Fund-raising expense. 
C)  Program services expenses. 
D)  Supporting services expenses. 
A)  A deduction from program revenue. 
B)  Fund-raising expense. 
C)  Program services expenses. 
D)  Supporting services expenses.

Question 12

Cash received by a nongovernmental NFP in year 1 that the donor stipulates is to cover operating expenses of the following year should be recognized as an "increase in temporarily restricted net assets" in year 1 and as "net assets released from restrictions" in year 2.

Accepted Answer

A) True 
 B)False

Question 13

Distinguish not-for-profit organizations from entities in the governmental and commercial sectors of the U.S.economy.

Accepted Answer

Not-for-profit organizations, government

Question 14

Explain the purpose of FASB ASC 958-720-45 on joint-cost accounting as it relates to reporting fund- raising expenses of a not-for-profit organization.How is this standard applied?

Accepted Answer

FASB ASC 958-720-45 provides guidance on

Question 15

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established

Accepted Answer

A)  By the FASB Codification. 
B)  When the FASB was created in 1974. 
C)  When the GASB was created in 1984. 
D)  In the AICPA's Statement of Auditing Standards No.69 (hierarchy of GAAP). 
A)  By the FASB Codification. 
B)  When the FASB was created in 1974. 
C)  When the GASB was created in 1984. 
D)  In the AICPA's Statement of Auditing Standards No.69 (hierarchy of GAAP).

Question 16

The FASB Codification requires the following financial statements for all nongovernmental,not-for- profit organizations

Accepted Answer

A)  Statement of financial position,statement of activities,statement of cash flows,and statement of functional expenses. 
B)  Statement of financial position,statement of operations,statement of cash flows,and statement of functional expenses. 
C)  Statement of financial position,statement of activities,and statement of cash flows. 
D)  Statement of financial position,statement of revenues and expenses,statement of cash flows,and statement of functional expenses. 
A)  Statement of financial position,statement of activities,statement of cash flows,and statement of functional expenses. 
B)  Statement of financial position,statement of operations,statement of cash flows,and statement of functional expenses. 
C)  Statement of financial position,statement of activities,and statement of cash flows. 
D)  Statement of financial position,statement of revenues and expenses,statement of cash flows,and statement of functional expenses.

Question 17

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is

Accepted Answer

A)  An unconditional promise to give. 
B)  Investment income. 
C)  A restricted gift. 
D)  An allocation of funds from the local United Way organization. 
A)  An unconditional promise to give. 
B)  Investment income. 
C)  A restricted gift. 
D)  An allocation of funds from the local United Way organization.

Question 18

FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions)only when received in cash.

Accepted Answer

A) True 
 B)False

Question 19

Not-for-profits are required to prepare a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 20

Donated materials are generally not recognized as contributions by a not-for-profit organization.

Accepted Answer

A) True 
 B)False

The purpose of a statement of functional expenses is to

Donated services should be recorded as contributions by a nongovernmental,not-for-profit organization if material,and if they meet the recognition criteria set out by FASB.

Similarity in the characteristics of nongovernmental not-for-profit (NFP)organizations and governmental NFP organizations can make it difficult to determine whether the NFP is nongovernmental or governmental in nature.

A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on the

Depreciation expense in a not-for-profit organization should be

FASB requires that support from special events,if related to the central ongoing and major activities of the organization,and related direct costs,be reported at their gross amounts in the statement of activities rather than reporting the special events support net of direct costs.

A voluntary health and welfare organization would report the account Provision for Uncollectible Pledges as which of the following?

Which of the following would be reported as an Asset with Restrictions on Use?

Museums and religious organizations must capitalize and report in their balance sheets assets such as works of art,historical treasures,historical archives,and similar collectible items if they are held for public inspection.

A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year.In the organization's statement of activities prepared in conformity with FASB standards,the $10,000 would be reported as

Cash received by a nongovernmental NFP in year 1 that the donor stipulates is to cover operating expenses of the following year should be recognized as an "increase in temporarily restricted net assets" in year 1 and as "net assets released from restrictions" in year 2.

Distinguish not-for-profit organizations from entities in the governmental and commercial sectors of the U.S.economy.

Explain the purpose of FASB ASC 958-720-45 on joint-cost accounting as it relates to reporting fund- raising expenses of a not-for-profit organization.How is this standard applied?

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established

The FASB Codification requires the following financial statements for all nongovernmental,not-for- profit organizations

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is

FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions)only when received in cash.

Not-for-profits are required to prepare a statement of cash flows.

Donated materials are generally not recognized as contributions by a not-for-profit organization.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 13: Accounting for Not-For-Profit Organizations

The purpose of a statement of functional expenses is to

Donated services should be recorded as contributions by a nongovernmental,not-for-profit organization if material,and if they meet the recognition criteria set out by FASB.

Similarity in the characteristics of nongovernmental not-for-profit (NFP)organizations and governmental NFP organizations can make it difficult to determine whether the NFP is nongovernmental or governmental in nature.

A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on the

Depreciation expense in a not-for-profit organization should be

FASB requires that support from special events,if related to the central ongoing and major activities of the organization,and related direct costs,be reported at their gross amounts in the statement of activities rather than reporting the special events support net of direct costs.

A voluntary health and welfare organization would report the account Provision for Uncollectible Pledges as which of the following?

Which of the following would be reported as an Asset with Restrictions on Use?

Museums and religious organizations must capitalize and report in their balance sheets assets such as works of art,historical treasures,historical archives,and similar collectible items if they are held for public inspection.

A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year.In the organization's statement of activities prepared in conformity with FASB standards,the $10,000 would be reported as

Cash received by a nongovernmental NFP in year 1 that the donor stipulates is to cover operating expenses of the following year should be recognized as an "increase in temporarily restricted net assets" in year 1 and as "net assets released from restrictions" in year 2.

Distinguish not-for-profit organizations from entities in the governmental and commercial sectors of the U.S.economy.

Explain the purpose of FASB ASC 958-720-45 on joint-cost accounting as it relates to reporting fund- raising expenses of a not-for-profit organization.How is this standard applied?

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established

The FASB Codification requires the following financial statements for all nongovernmental,not-for- profit organizations

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is

FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions)only when received in cash.

Not-for-profits are required to prepare a statement of cash flows.

Donated materials are generally not recognized as contributions by a not-for-profit organization.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters