Question 1

A private not-for-profit reports all expenses in unrestricted net asset class.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following financial statements is required for private not-for-profit organizations?

Accepted Answer

A)  Income Statement. 
B)  Statement of Net Assets. 
C)  Statement of Cash Flows. 
D)  Budgetary Comparison Schedule. 
A)  Income Statement. 
B)  Statement of Net Assets. 
C)  Statement of Cash Flows. 
D)  Budgetary Comparison Schedule.

Question 3

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

Accepted Answer

A)  Historical cost. 
B)  Fair Market Value. 
C)  Lower of cost or Market. 
D)  None of the above. 
A)  Historical cost. 
B)  Fair Market Value. 
C)  Lower of cost or Market. 
D)  None of the above.

Question 4

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Accepted Answer

A)  Reported only as an exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for. 
A)  Reported only as an exchange transaction. 
B)  Reported only as a contributions. 
C)  Reported as either an exchange transaction or contribution, depending on management's judgment. 
D)  The two parts should be separately accounted for.

Question 5

Conditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

FASB statement 116 requires contributions to be recorded as revenue when

Accepted Answer

A)  The contribution is promised. 
B)  The contributed asset is actually received. 
C)  The contribution is likely to be received. 
D)  The contribution is probable and measurable. 
A)  The contribution is promised. 
B)  The contributed asset is actually received. 
C)  The contribution is likely to be received. 
D)  The contribution is probable and measurable.

Question 8

A donor made an unconditional pledge in 2014 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2015 for unrestricted use in 2015. The organization should:

Accepted Answer

A)  Record the pledge receivable and deferred revenue in 2014. 
B)  Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015. 
C)  Record the pledge as unrestricted revenue in 2014. 
D)  Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015, but only in an amount equivalent to the amount that is spent in 2015. 
A)  Record the pledge receivable and deferred revenue in 2014. 
B)  Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015. 
C)  Record the pledge as unrestricted revenue in 2014. 
D)  Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015, but only in an amount equivalent to the amount that is spent in 2015.

Question 9

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.

Accepted Answer

It is not uncommon for a not-for-profit

Question 10

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes. 
A)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
B)  Expenses are reported by function in the Statement of Activities or in the notes. 
C)  The FASB describes functions as either program or supporting. 
D)  Major program classifications should be shown in the Statement of Activities or in the notes.

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Unrestricted, Temporarily Restricted, Permanently Restricted Net Assets. 
B)  Net investment in capital assets, Restricted and Unrestricted net assets. 
C)  Unreserved Fund Balance, Reserved Fund Balance. 
D)  None of the above. 
A)  Unrestricted, Temporarily Restricted, Permanently Restricted Net Assets. 
B)  Net investment in capital assets, Restricted and Unrestricted net assets. 
C)  Unreserved Fund Balance, Reserved Fund Balance. 
D)  None of the above.

Question 14

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

Accepted Answer

A)  As an expense when originally pledged. 
B)  As a reduction in revenue when pledged. 
C)  As an expense when contributed. 
D)  As a reduction in revenue when contributed. 
A)  As an expense when originally pledged. 
B)  As a reduction in revenue when pledged. 
C)  As an expense when contributed. 
D)  As a reduction in revenue when contributed.

Question 15

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

Accepted Answer

Examples of the activities covered by th

Question 16

Which of the following organizations would not be subject to the accounting and reporting requirements of FASB Statements 116 (Accounting for Contributions)and 117 (Financial Reporting for Not-for-Profit Organizations)?

Accepted Answer

A)  The City of Hannibal Missouri. 
B)  St. Jude Children's Hospital. 
C)  Live Arts Theater. 
D)  Girl Scouts. 
A)  The City of Hannibal Missouri. 
B)  St. Jude Children's Hospital. 
C)  Live Arts Theater. 
D)  Girl Scouts.

Question 17

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

Accepted Answer

A)  Endowment. 
B)  Term endowment. 
C)  Quasi-endowment. 
D)  None of the above. 
A)  Endowment. 
B)  Term endowment. 
C)  Quasi-endowment. 
D)  None of the above.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The Statement of Functional Expenses:

Accepted Answer

A)  Is no longer a required financial statement of any organization. 
B)  Is required of all private not-for-profit organizations. 
C)  Is required of voluntary health and welfare organizations. 
D)  Is required of all private colleges but not public colleges. 
A)  Is no longer a required financial statement of any organization. 
B)  Is required of all private not-for-profit organizations. 
C)  Is required of voluntary health and welfare organizations. 
D)  Is required of all private colleges but not public colleges.

Question 20

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

Accepted Answer

A)  AICPA. 
B)  GASB. 
C)  FASB. 
D)  SEC. 
A)  AICPA. 
B)  GASB. 
C)  FASB. 
D)  SEC.

A private not-for-profit reports all expenses in unrestricted net asset class.

Which of the following financial statements is required for private not-for-profit organizations?

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

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Conditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables.

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

FASB statement 116 requires contributions to be recorded as revenue when

A donor made an unconditional pledge in 2014 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2015 for unrestricted use in 2015. The organization should:

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

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

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.

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

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

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

Which of the following organizations would not be subject to the accounting and reporting requirements of FASB Statements 116 (Accounting for Contributions)and 117 (Financial Reporting for Not-for-Profit Organizations)?

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

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

The Statement of Functional Expenses:

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

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

A private not-for-profit reports all expenses in unrestricted net asset class.

Which of the following financial statements is required for private not-for-profit organizations?

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

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Conditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables.

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

FASB statement 116 requires contributions to be recorded as revenue when

A donor made an unconditional pledge in 2014 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2015 for unrestricted use in 2015. The organization should:

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

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

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.

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

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

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

Which of the following organizations would not be subject to the accounting and reporting requirements of FASB Statements 116 (Accounting for Contributions)and 117 (Financial Reporting for Not-for-Profit Organizations)?

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

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

The Statement of Functional Expenses:

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

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