Question 1

Which of the following is not an example of a voluntary health and welfare organization?

Accepted Answer

A) Meals on Wheels. 
B) Performing arts organizations. 
C) Big Brothers/Big Sisters. 
D) Girl and Boy Scouts. 
A) Meals on Wheels. 
B) Performing arts organizations. 
C) Big Brothers/Big Sisters. 
D) Girl and Boy Scouts.

Question 2

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

Accepted Answer

A)  Contributions to a not-for-profit are recorded at fair market value at the date of receipt. 
B)  Contributions of assets other than cash to a not-for-profit are recorded at the donor's basis. 
C)  Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition. 
D)  Revenues, including contributions are considered to be unrestricted unless donor-imposed restrictions apply. 
A)  Contributions to a not-for-profit are recorded at fair market value at the date of receipt. 
B)  Contributions of assets other than cash to a not-for-profit are recorded at the donor's basis. 
C)  Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition. 
D)  Revenues, including contributions are considered to be unrestricted unless donor-imposed restrictions apply.

Question 3

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

Accepted Answer

A)  Exchange transactions should be recorded on the accrual basis of accounting where the revenues are recognized when earned. 
B)  An intention to give should be recorded as revenue when the intention is communicated to the not-for-profit. 
C)  In certain situations contributed services should be recognized as revenue. 
D)  FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value. 
A)  Exchange transactions should be recorded on the accrual basis of accounting where the revenues are recognized when earned. 
B)  An intention to give should be recorded as revenue when the intention is communicated to the not-for-profit. 
C)  In certain situations contributed services should be recognized as revenue. 
D)  FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

Question 4

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

Accepted Answer

A)  If the combination qualifies as a merger, it will be accounted for using the carryover method. 
B)  Goodwill is recognized on long term assets only 
C)  Assets and liabilities are transferred from both existing entities to the new entity at book value. 
D)  The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger. 
A)  If the combination qualifies as a merger, it will be accounted for using the carryover method. 
B)  Goodwill is recognized on long term assets only 
C)  Assets and liabilities are transferred from both existing entities to the new entity at book value. 
D)  The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

Question 5

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

Accepted Answer

A)  Record the donated cash as a contribution. 
B)  Record a liability, as it is merely acting as an agent for the donation. 
C)  Record the scholarship awarded as a reduction of revenue. 
D)  Both A & C. 
A)  Record the donated cash as a contribution. 
B)  Record a liability, as it is merely acting as an agent for the donation. 
C)  Record the scholarship awarded as a reduction of revenue. 
D)  Both A & C.

Question 6

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

Accepted Answer

A)  They are recorded at the present value of future collections. 
B)  They should be reported net of an allowance for estimated uncollectibles. 
C)  They should be recorded as temporarily restricted. 
D)  At the end of each accounting period, the difference between the new and previously recorded present value is recorded as interest revenue. 
A)  They are recorded at the present value of future collections. 
B)  They should be reported net of an allowance for estimated uncollectibles. 
C)  They should be recorded as temporarily restricted. 
D)  At the end of each accounting period, the difference between the new and previously recorded present value is recorded as interest revenue.

Question 7

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

Accepted Answer

A)  For satisfaction of time restrictions. 
B)  For satisfaction of program restrictions. 
C)  For satisfaction of fixed asset acquisition. 
D)  For permanently restricted net assets. 
A)  For satisfaction of time restrictions. 
B)  For satisfaction of program restrictions. 
C)  For satisfaction of fixed asset acquisition. 
D)  For permanently restricted net assets.

Question 8

A Statement of Functional Expenses is required for

Accepted Answer

A)  State governments. 
B)  Tax agencies. 
C)  Voluntary health and welfare organizations. 
D)  Colleges and universities. 
A)  State governments. 
B)  Tax agencies. 
C)  Voluntary health and welfare organizations. 
D)  Colleges and universities.

Question 9

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 10

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

Accepted Answer

A)  GASB & Accrual. 
B)  GASB & Modified Accrual. 
C)  FASB & Accrual. 
D)  FASB & Modified Accrual. 
A)  GASB & Accrual. 
B)  GASB & Modified Accrual. 
C)  FASB & Accrual. 
D)  FASB & Modified Accrual.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A not-for-profit organization receiving donated fixed assets must record those assets as temporarily restricted.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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?

Accepted Answer

A)  No entries are required for this event. 
B)  Supporting Service expense $2,000 Contribution revenue $2,000 
C)  Capital Expenditures $2,000 Contribution revenue $2,000 
D)  Building $2,000 Contribution revenue $2,000 
A)  No entries are required for this event. 
B)  Supporting Service expense $2,000 Contribution revenue $2,000 
C)  Capital Expenditures $2,000 Contribution revenue $2,000 
D)  Building $2,000 Contribution revenue $2,000

Question 16

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

Accepted Answer

A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Capital restricted net assets. 
D)  Permanently restricted net assets. 
A)  Unrestricted net assets. 
B)  Temporarily restricted net assets. 
C)  Capital restricted net assets. 
D)  Permanently restricted net assets.

Question 17

A civic ballet company sells 100 "Benefactor" status memberships for $1,000 each. The Benefactors each receive a season ticket valued at $350,and a listing in the company's program. How would the ballet company record the sale of these 100 memberships at the beginning of the season?

Accepted Answer

A)  Cash $100,000 Deferred Revenue $100,000 
B)  Cash - Restricted $ 65,000 Cash - Unrestricted 35,000
Contributions - Restricted $ 65,000
Revenue 35,000 
C)  Cash $100,000 Revenue $ 35,000
Contributions - Restricted 65,000 
D)  Cash $100,000 Deferred Revenue $ 35,000
Contributions - Unrestricted 65,000 
A)  Cash $100,000 Deferred Revenue $100,000 
B)  Cash - Restricted $ 65,000 Cash - Unrestricted 35,000
Contributions - Restricted $ 65,000
Revenue 35,000 
C)  Cash $100,000 Revenue $ 35,000
Contributions - Restricted 65,000 
D)  Cash $100,000 Deferred Revenue $ 35,000
Contributions - Unrestricted 65,000

Question 18

Private not-for-profit organizations should have little to no profit.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The donation is recorded as a receivable

Which of the following is not an example of a voluntary health and welfare organization?

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

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

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

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

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

A Statement of Functional Expenses is required for

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

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

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

A not-for-profit organization receiving donated fixed assets must record those assets as temporarily restricted.

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

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

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?

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

A civic ballet company sells 100 "Benefactor" status memberships for $1,000 each. The Benefactors each receive a season ticket valued at $350,and a listing in the company's program. How would the ballet company record the sale of these 100 memberships at the beginning of the season?

Private not-for-profit organizations should have little to no profit.

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

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

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

Which of the following is not an example of a voluntary health and welfare organization?

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

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

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No.164,Not-for-Profit Entities: Mergers and Acquisitions?

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

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

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

A Statement of Functional Expenses is required for

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

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

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

A not-for-profit organization receiving donated fixed assets must record those assets as temporarily restricted.

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

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

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?

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

A civic ballet company sells 100 "Benefactor" status memberships for $1,000 each. The Benefactors each receive a season ticket valued at $350,and a listing in the company's program. How would the ballet company record the sale of these 100 memberships at the beginning of the season?

Private not-for-profit organizations should have little to no profit.

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

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

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