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

If fixed assets are recorded as temporarily restricted assets,then a reclassification is made each accounting period to unrestricted resources in the amount equal to the depreciation or an allocation based on the time the asset is restricted,whichever is shorter.

The three classes of net assets reported for a private not-for-profit organization include all of the following except:

The Statement of Functional Expenses:

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

What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?

FASB Statement 124,Accounting for Certain Investments of Not-for-Profit Organizations:

The GASB has the authority to establish accounting and financial reporting standards for both government-owned and private not-for-profit organizations.

Which of the following is not true regarding the treatment of multiyear pledges,according to FASB Statement 116?

FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church.At what point should the church record the contribution?

Private not-for-profits use record encumbrances to maintain budgetary control.

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

All donated services are recognized as revenue.

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

FASB Statement 136 Transfer of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others provides guidance on how intermediary recipient organizations should record receipt of resources held for others.Briefly describe the issue and how such transfers should be recorded.

Which of the following is a legitimate reason for a private not-for-profit to generate a surplus?

The equity section of Statement of Financial Position for private not-for-profits includes which accounts?

An unconditional pledge of support is properly recorded as Temporarily Restricted Revenue at the time of the pledge.Changes in the present value of the receivable resulting from the passage of time is reported as:

Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?

FASB statement 116 requires contributions to be recorded as revenue when the contribution is likely to be received.