Exam 13: Accounting for Not-For-Profit Organizations

A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements?

To be considered a nongovernmental not-for-profit an organization must be tax-exempt.

Under FASB standards the statement of activities for a not-for-profit organization is required to be separated into operating and nonoperating activity.

The FASB generally requires that not-for-profit organizations record unconditional pledges as support (contributions)only when received in cash.

GAAP for nongovernmental,not-for-profit organizations is set by the FASB and the AICPA.

The FASB states that depreciation expense in a not-for-profit organization should be:

According to the FASB,temporarily restricted net assets are released from restrictions:

How does the FASB require not-for-profit organizations to report expenses?

According to the FASB Codification,which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP)to be recorded as both a contribution and as an expense?

The mission of the not-for-profit organization,Save Our Butterflies Foundation,is to provide research and education concerning the conservation of butterflies. Which of the following expenses would be reported as a support expense by the Foundation?

One characteristic that separates a governmental not-for-profit from a nongovernmental not-for-profit is the ability to raise taxes.

The FASB requires the statement of financial position prepared by a not-for-profit organization to report net assets in these categories: unrestricted,temporarily restricted,net investment in capital assets,and permanently restricted.

Similarity in the characteristics of nongovernmental not-for-profit (NFP)organizations and governmental NFP organizations can make it difficult to determine whether the NFP is nongovernmental or governmental in nature.

The purpose of a statement of functional expenses is to:

Hospitals,colleges and universities,voluntary health and welfare organizations,and other not-for-profit organizations all follow the same standards for recognition of revenues and expenses.

If the program services expenses category includes both directly related costs and indirect costs allocated to it,why is it necessary to have a separate category of "supporting services expenses"?

Explain the accounting for contributions received by a financial intermediary under the FASB Codification.

Cash received by a nongovernmental not-for-profit in year 1 that the donor stipulates is to cover operating expenses of the following year should be recognized as an "increase in temporarily restricted net assets" in year 1 and as "net assets released from restrictions" in year 2.

For financial reasons,two not-for-profit hospice organizations (hospices A and B)decided to combine. As a result of the combination,the assets and liabilities of the combined hospice were reported at the amounts that had been previously reported by A and B on their financial statements.Under the FASB,the combining of hospices A and B would be classified as which of the following?

According to the FASB,a voluntary health and welfare organization would report the account Provision for Uncollectible Pledges as which of the following?