Question 1

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

Accepted Answer

A)  Requires that investments in equity securities be carried at book value. 
B)  Requires that investments accounted for under the equity method be adjusted to fair value at the end of the accounting period. 
C)  Requires that investments in debt securities be carried at fair value. 
D)  Requires that investments in consolidated subsidiaries be reported as permanently restricted. 
A)  Requires that investments in equity securities be carried at book value. 
B)  Requires that investments accounted for under the equity method be adjusted to fair value at the end of the accounting period. 
C)  Requires that investments in debt securities be carried at fair value. 
D)  Requires that investments in consolidated subsidiaries be reported as permanently restricted.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

An organization that possess the followi

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Is related to administration and fund raising activities. 
B)  Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation. 
C)  A and B are both required for the service to be recorded as revenue 
D)  None of the above, contributed services are not recorded as revenue 
A)  Is related to administration and fund raising activities. 
B)  Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation. 
C)  A and B are both required for the service to be recorded as revenue 
D)  None of the above, contributed services are not recorded as revenue

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When should unconditional pledges be recorded as revenue?

Accepted Answer

A)  Never. 
B)  When money is received. 
C)  When the pledge is made. 
D)  When full collection is assured. 
A)  Never. 
B)  When money is received. 
C)  When the pledge is made. 
D)  When full collection is assured.

Question 8

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

Accepted Answer

If the combination qualifies as a merger

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

Accepted Answer

A)  Time restrictions placed on the permanently restricted net assets have been met. 
B)  Purpose restrictions placed on the permanently restricted net assets have been met. 
C)  Either of the above criteria (A and 
B)  have been met. 
D)  Permanently restricted net assets would not be reclassified to temporarily restricted net assets. 
A)  Time restrictions placed on the permanently restricted net assets have been met. 
B)  Purpose restrictions placed on the permanently restricted net assets have been met. 
C)  Either of the above criteria (A and 
B)  have been met. 
D)  Permanently restricted net assets would not be reclassified to temporarily restricted net assets.

Question 11

The financial statements of private not-for-profits are intended primarily for those who have a residual claim to the net assets of the organization.

Accepted Answer

A) True 
 B)False

Question 12

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

a.The statements contain no Statement of

Question 14

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?

Accepted Answer

A)  The purpose of the mailing includes accomplishing program functions. 
B)  The audience is selected based on characteristics other than ability to make contributions. 
C)  The mailing calls for specific action by the recipient that is consistent with the goals of the not-for-profit's mission. 
D)  All of the above. 
A)  The purpose of the mailing includes accomplishing program functions. 
B)  The audience is selected based on characteristics other than ability to make contributions. 
C)  The mailing calls for specific action by the recipient that is consistent with the goals of the not-for-profit's mission. 
D)  All of the above.

Question 15

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

Accepted Answer

A)  Either the direct or indirect method may be used. 
B)  If a not-for-profit organization received a restricted cash contribution for long-term purposes, that cash contribution would be reported as a cash flow from financing activities. 
C)  Restricted contributions used for long-term purposes are reported as financing activities. 
D)  Four categories of cash flows are used. 
A)  Either the direct or indirect method may be used. 
B)  If a not-for-profit organization received a restricted cash contribution for long-term purposes, that cash contribution would be reported as a cash flow from financing activities. 
C)  Restricted contributions used for long-term purposes are reported as financing activities. 
D)  Four categories of cash flows are used.

Question 16

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:

Accepted Answer

A)  Record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets. 
B)  Not record the artwork, but provide information about the artwork in the notes. 
C)  Do either of the above, depending upon the policy of the not-for-profit. 
D)  Record the artwork as both a contribution and an expense. 
A)  Record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets. 
B)  Not record the artwork, but provide information about the artwork in the notes. 
C)  Do either of the above, depending upon the policy of the not-for-profit. 
D)  Record the artwork as both a contribution and an expense.

Question 17

When might it be appropriate for a not-for-profit organization to report a surplus (increase in net assets)?

Accepted Answer

There are a number of reasons why a not-

Question 18

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 19

As of December 31,2014,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 31,2015 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 2014.
(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 12-31-2015 totaled $2,000.
Required:
 Prepare a Statement of Activities and Changes in Net Assets for the Museum for the year ended 12-31-2015.

Accepted Answer

The answer of As of December 31,2014,The Halifax Fishing Museum...

Question 20

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

Accepted Answer

A)  Discovery Museum (nongovernmental). 
B)  American Heart Association. 
C)  Meals on Wheels. 
D)  Local Farm Cooperative. 
A)  Discovery Museum (nongovernmental). 
B)  American Heart Association. 
C)  Meals on Wheels. 
D)  Local Farm Cooperative.

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

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

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

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

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

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

When should unconditional pledges be recorded as revenue?

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

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.

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

The financial statements of private not-for-profits are intended primarily for those who have a residual claim to the net assets of the organization.

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

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?

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

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:

When might it be appropriate for a not-for-profit organization to report a surplus (increase in net assets)?

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

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

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 Funds, Inter-fund Transactions

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

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

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

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

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

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

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

When should unconditional pledges be recorded as revenue?

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

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.

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

The financial statements of private not-for-profits are intended primarily for those who have a residual claim to the net assets of the organization.

With respect to the Statement of Cash Flows for a private not-for-profit organization,the purchase of equipment would be considered an investing activity.

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?

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

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:

When might it be appropriate for a not-for-profit organization to report a surplus (increase in net assets)?

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

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

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 Funds, Inter-fund Transactions

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