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

After the issuing of Statement 117,not-for-profit financial statements are relatively standardized across industries.

A donor gave $60,000 to a nongovernmental,not-for-profit charity with instructions that the funds be transferred to Sam Smith,an individual who lost his home in a fire.The not-for-profit would:

Fixed assets may be recorded by a private not-for-profit as temporarily restricted or unrestricted,depending on the policy of the organization.

Voluntary health and welfare organizations promote the general health and well-being of the public.

A Statement of Functional Expenses is required for public colleges and universities.

How is the receipt of an unconditional pledge to contribute to a private not-for-profit organization recorded?

Under FASB Statement 117,reclassifications of net assets are not made:

Donors to private not-for-profit entities are primarily concerned with which of the following performance measures?

How does a for-profit organization record contributions made to a private not-for-profit organization?

Assets that are restricted by an organization's board can be reported as either temporarily restricted or permanently restricted,according to the board's intentions.

FASB statement 116 requires contributions to be recorded as revenue when the contributed money is actually received.

Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.

A Statement of Functional Expenses is required for government-owned hospitals.

What are the financial statements required for all nongovernmental,not-for-profit organizations?

Private not-for-profits must follow all applicable ____ standards in recording transactions.

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?

As of December 31,2013,The Halifax Fishing Museum had unrestricted cash of $52,000,building and land with a net book value of $145,000,and permanently restricted collections totaling $ 105,000.There were no liabilities.The Museum has two programs: Operation of a Fishing Museum and Educational Programs.During the year ended December 31,2014 the Museum incurred the following transactions: (1)Cash contributions to the Museum included (a)unrestricted $ 512,000,(b)restricted for educational programs $ 37,000 and (c)restricted by the donor for endowment purposes $100,000. (2)Additional unrestricted cash receipts included $ 29,000 in fees from individuals and organizations using the Museum building as a meeting facility.Included in this is $ 3,000 for a meeting to be held in January 2013. (3)Incurred cash expenses: (4)Purchased land for future expansion to the adjoining lot in the amount of $ 35,000. (5)Depreciation on the Museum building amounted to $ 55,000 and is allocated on the basis of square feet: $ 40,000 to Museum operations,$ 5,000 to Education Programs,and $ 10,000 to administration. (6)Outstanding purchase orders for administrative supplies at 12-31-2014 totaled $2,000. Required: Prepare a Statement of Activities and Changes in Net Assets for the Museum for the year ended 12-31-2014.

Private not-for-profits use the accrual basis and record both fixed assets and long-term debt..

A private not-for-profit reports expenses in either the unrestricted net asset class or restricted net asset class,depending which program the expense was supporting.

Which of the following is not correct with respect to acquisitions under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions? A) If the combination qualifies as an acquisition, the not-for-profit may acquire control of a business enterprise or other not-for-profit organization and will be accounted for using the acquisition method. B) Combinations not meeting the definition of a merger are reported as acquisitions. C) Assets and liabilities of the acquired entity are recorded at fair value on the books of the not-for-profit D) Entities that derive their revenues from business-like activities are required to expense the goodwill at the date of acquisition.