Question 1

Performing arts organizations are an example of other private not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 2

Under FASB Statement No.116,multiyear pledges are to be recorded as a pledge receivable for the total amount and contribution revenue will be recorded proportionally each year of the pledge.

Accepted Answer

A) True 
 B)False

Question 3

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

Accepted Answer

A) True 
 B)False

Question 4

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Accepted Answer

A)  Reported only as a exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for. 
A)  Reported only as a exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for.

Question 5

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following factors,if present,would indicate that a transaction is not a contribution?

Accepted Answer

A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received. 
A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received.

Question 7

Which of the following would not be recognized as contribution revenue by a private not-for-profit organization?

Accepted Answer

A)  A pledge to support an educational program for the next 3 years. 
B)  A health clinic is paid to perform clinical trials of a new medicine. 
C)  A gift restricted to purchase equipment. 
D)  Dues paid in excess of the fair value of benefits received. 
A)  A pledge to support an educational program for the next 3 years. 
B)  A health clinic is paid to perform clinical trials of a new medicine. 
C)  A gift restricted to purchase equipment. 
D)  Dues paid in excess of the fair value of benefits received.

Question 8

When preparing the Statement of Cash Flows for a private not-for-profit organization,the direct method of must be used.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.116?

Accepted Answer

A)  Operating purposes other than to provide goods or services at a profit. 
B)  Absence of ownership interests like those of business enterprises. 
C)  Contributions of significant amounts of resources from resources providers who do not expect commensurate or proportionate pecuniary return. 
D)  Upon dissolution of the organization, remaining assets are to be distributed to the original contributors. 
A)  Operating purposes other than to provide goods or services at a profit. 
B)  Absence of ownership interests like those of business enterprises. 
C)  Contributions of significant amounts of resources from resources providers who do not expect commensurate or proportionate pecuniary return. 
D)  Upon dissolution of the organization, remaining assets are to be distributed to the original contributors.

Question 10

In 2014,a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug.An advance payment of $200,000 was received in 2014.The college was to receive $1,500 per individual test.In 2014,the college completed 100 tests.How much revenue should the college report for 2014?

Accepted Answer

A)  $ 300,000 
B)  $ 200,000 
C)  $ 150,000 
D)  $ 100,000 
A)  $ 300,000 
B)  $ 200,000 
C)  $ 150,000 
D)  $ 100,000

Question 11

Which organization has standard setting authority over governmentally related not-for-profit organizations,such as hospitals colleges and universities.

Accepted Answer

A)  GASB. 
B)  FASB. 
C)  AICPA. 
D)  SEC. 
A)  GASB. 
B)  FASB. 
C)  AICPA. 
D)  SEC.

Question 12

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

Accepted Answer

A)  The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received. 
B)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income 
C)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased. 
D)  Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization. 
A)  The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received. 
B)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income 
C)  At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased. 
D)  Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization.

Question 14

FASB statement 116 requires contributions to be recorded as revenue when

Accepted Answer

A)  The contribution is promised. 
B)  The contributed asset is actually received. 
C)  The contribution is likely to be received. 
D)  The contribution is probable and measurable. 
A)  The contribution is promised. 
B)  The contributed asset is actually received. 
C)  The contribution is likely to be received. 
D)  The contribution is probable and measurable.

Question 15

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

Accepted Answer

A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes. 
A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes.

Question 16

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

Accepted Answer

A)  Expenses are shown only as decreases in unrestricted net assets. 
B)  Reclassifications for expiration of time restrictions are shown in the revenues and support section. 
C)  Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets. 
D)  Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes. 
A)  Expenses are shown only as decreases in unrestricted net assets. 
B)  Reclassifications for expiration of time restrictions are shown in the revenues and support section. 
C)  Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets. 
D)  Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

Question 17

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The Statement of Functional expenses presents a matrix of expenses classified by function (various programs,fund-raising,etc)and by object or natural classification (salaries,supplies,travel,etc.).

Accepted Answer

A) True 
 B)False

Question 20

Country clubs and labor unions are not included in the category "other not-for-profit" organizations because they provide benefit to their members only and not to the general public.

Accepted Answer

A) True 
 B)False

Performing arts organizations are an example of other private not-for-profit organizations.

Under FASB Statement No.116,multiyear pledges are to be recorded as a pledge receivable for the total amount and contribution revenue will be recorded proportionally each year of the pledge.

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Which of the following factors,if present,would indicate that a transaction is not a contribution?

Which of the following would not be recognized as contribution revenue by a private not-for-profit organization?

When preparing the Statement of Cash Flows for a private not-for-profit organization,the direct method of must be used.

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.116?

Which organization has standard setting authority over governmentally related not-for-profit organizations,such as hospitals colleges and universities.

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

FASB statement 116 requires contributions to be recorded as revenue when

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

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

The Statement of Functional expenses presents a matrix of expenses classified by function (various programs,fund-raising,etc)and by object or natural classification (salaries,supplies,travel,etc.).

Country clubs and labor unions are not included in the category "other not-for-profit" organizations because they provide benefit to their members only and not to the general public.

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

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

Performing arts organizations are an example of other private not-for-profit organizations.

Under FASB Statement No.116,multiyear pledges are to be recorded as a pledge receivable for the total amount and contribution revenue will be recorded proportionally each year of the pledge.

The financial statements of private not-for-profits are intended primarily for use by present and potential donors.

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Contributions to a private not-for-profit are recorded at fair market value at the date of receipt.

Which of the following factors,if present,would indicate that a transaction is not a contribution?

Which of the following would not be recognized as contribution revenue by a private not-for-profit organization?

When preparing the Statement of Cash Flows for a private not-for-profit organization,the direct method of must be used.

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No.116?

Which organization has standard setting authority over governmentally related not-for-profit organizations,such as hospitals colleges and universities.

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No.116?

FASB statement 116 requires contributions to be recorded as revenue when

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

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

The Statement of Functional expenses presents a matrix of expenses classified by function (various programs,fund-raising,etc)and by object or natural classification (salaries,supplies,travel,etc.).

Country clubs and labor unions are not included in the category "other not-for-profit" organizations because they provide benefit to their members only and not to the general public.

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters