Exam 10: Accounting for Private Not-For-Profit Organizations

The FASB requires private not-for-profit organizations to report revenues separated by unrestricted,temporarily restricted and permanently restricted.

The FASB has the authority to set accounting standards for all of the following organizations except:

A donor gave artwork to a nongovernmental,not-for-profit museum.The artwork qualified as a "collection," under FASB rules.The not-for-profit could:

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Contrast the reporting of mergers and acquisitions under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

Contributed services are recognized as revenue for a private not-for-profit when the service:

A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building.The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue.When the building is acquired,the organization should:

In which of the following categories may Investment Income be reported by Not-for-Profit organizations: I. Unrestricted net asset II. Temporarily restricted net asset III.Permanently restricted net asset

Which of the following would not be an example of a voluntary health and welfare organization?

Which of the following organizations would be subject to the (level b)accounting and reporting requirements of the AICPA's Audit and Accounting Guide: Not-for-Profit Organizations?

Which of the following is not an example of a donor imposed restriction?

Distinguish between an exchange transaction and a contribution.How is the accounting different for these two events?

Assume that The Sandy Creek Nature Center,a private not-for-profit organization,started the fiscal year ending December 31,2014 with $58,380 in temporarily restricted net assets.The amounts are restricted for the following: •restricted for educational programs relating to preservation of wetlands $16,000. •restricted for future equipment purchases $17,000 (Fixed assets are recorded as unrestricted when acquired)and •a promise to provide $5,000 each of the next six years for general support.Assume the pledge was made on December 31,2013 and the present value of six (January 1)payments discounted at 5 percent is $25,380. During the fiscal year ended December 31,2014,the following transactions occur: (a)The first $5,000 installment on the pledge receivable was received. (b)Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $17,900 (c)The $17,000 received in a prior year for equipment,together with an additional $25,500 was used to acquire equipment. (d)Interest of 6% is recorded on the remaining balance of the pledge receivable. Required: Prepare the journal entries necessary for the above transactions:

The AICPA Not-for-Profit Guide applies to both governmental and nongovernmental not-for-profit organizations.

Present and potential donors are the primary users of private not-for-profit financial statements.

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.In its Statement of Activities,the annual provision for depreciation should:

A Statement of Functional Expenses is required for all not-for-profit organizations.

A private not-for-profit's expenses are reported by function,program or supporting,in the Statement of Activities or in the notes.

The Statement of Cash Flows for a private not-for-profit organization has four different classifications of cash flows.

Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides: Not-for-Profit Organizations and Health Care Organizations.