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

A donor made a pledge in 2013 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2014 for unrestricted use in 2014.The organization should:

Below are the complete set of published financial statements taken from the annual report of the Jamestown Museum.The statements do not comply with generally accepted accounting principles for private not-for-profits in a number of ways.Review these statements and describe instances in which the statements fail to comply with accepted accounting standards.You must be able to justify your assertions - for example you cannot say they failed to capitalize leases if there is no evidence they have a qualifying lease. Example: (1)The financial statements contain no note disclosures.The notes are an integral part of the financial statements and many individual disclosures are required under FASB standards.

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale.In recording the sale,Care should:

Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity,such as Public Education?

According to FASB Statement No.116,Appendix D,how are not-for-profit organizations distinguished from a business?

Which of the following would be a contribution increasing permanently restricted net assets?

Conditional pledges should not be recognized as revenue until the conditions have been met.

Contributions to a private not-for-profit may be restricted as to time,purpose or for plant acquisition.

The FASB requires private not-for-profit organizations to report net assets (the excess of assets over liabilities)separated by unrestricted,temporarily restricted and permanently restricted.

Supporting activities as classified in the Statement of Activities,normally include

Which of the following statements is false with respect to private not-for-profit organizations?

A skilled carpenter repaired the roof of the administrative building for a private not-for-profit free of charge.The not-for-profit would have had to pay $2,000 for this service if not donated.What entry should the not-for-profit make?

Which of the following is true regarding the Statement of Cash Flows for nongovernmental,not-for-profit organizations?

Investments by private not-for-profit organizations in equity securities should be carried at

Private not-for-profit organizations record depreciation expense.

Net Assets must be presented separately in the Statement of Financial Position for the three classes (unrestricted,temporarily restricted,and permanently restricted).

Examples of voluntary health and welfare organizations would include the Girl Scouts and the American Heart Association.

The institution's governing board decided to create an endowment from contributed funds,this is called a(n)________ and the funds are unrestricted.

Which of the following financial statements are required for voluntary health and welfare organizations?

A donor gave equipment valued at $50,000 at the beginning of 2014 to a private not-for-profit organization.The equipment had a 10-year life and depreciation of $5,000 was charged during 2014.At the end of the year,the net assets to be reported in unrestricted net assets related to this equipment would be: