Question 1

The FASB Codification requires the following financial statements for all not-for-profit organizations:

Accepted Answer

A)  Statement of financial position, statement of activities, statement of cash flows, and statement of functional expenses. 
B)  Statement of financial position, statement of operations, statement of cash flows, and statement of functional expenses. 
C)  Statement of financial position, statement of activities, and statement of cash flows. 
D)  Statement of financial position, statement of revenues and expenses, statement of cash flows, and statement of functional expenses. 
A)  Statement of financial position, statement of activities, statement of cash flows, and statement of functional expenses. 
B)  Statement of financial position, statement of operations, statement of cash flows, and statement of functional expenses. 
C)  Statement of financial position, statement of activities, and statement of cash flows. 
D)  Statement of financial position, statement of revenues and expenses, statement of cash flows, and statement of functional expenses.

Question 2

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?

Accepted Answer

A)  Board-designated net assets. 
B)  Permanently restricted net assets. 
C)  Endowment assets. 
D)  Temporarily restricted net assets. 
A)  Board-designated net assets. 
B)  Permanently restricted net assets. 
C)  Endowment assets. 
D)  Temporarily restricted net assets.

Question 3

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is:

Accepted Answer

A)  An unconditional promise to give. 
B)  Investment income. 
C)  A restricted gift. 
D)  An allocation of funds from the local United Way organization. 
A)  An unconditional promise to give. 
B)  Investment income. 
C)  A restricted gift. 
D)  An allocation of funds from the local United Way organization.

Question 4

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years.Under FASB standards the pledge would be recognized as:

Accepted Answer

A)  A contribution of $20,000 in each of the five years a contribution is made. 
B)  A contribution of $100,000 in the year the pledge is made, adjusted for the estimated uncollectible amount. 
C)  Deferred support of $100,000 in the year the pledge was made. 
D)  A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value. 
A)  A contribution of $20,000 in each of the five years a contribution is made. 
B)  A contribution of $100,000 in the year the pledge is made, adjusted for the estimated uncollectible amount. 
C)  Deferred support of $100,000 in the year the pledge was made. 
D)  A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value.

Question 5

According to the information provided in the textbook,Beta Alpha Psi would be considered an other nonprofit organization (ONPO).

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would be considered "contribution revenue or support" of a not-for-profit organization under FASB standards?

Accepted Answer

A)  Gain on disposal of capital assets. 
B)  Money received from a fund-raising campaign. 
C)  Money received from rental of surplus office space. 
D)  Investment earnings. 
A)  Gain on disposal of capital assets. 
B)  Money received from a fund-raising campaign. 
C)  Money received from rental of surplus office space. 
D)  Investment earnings.

Question 7

The FASB requires investments in equity securities that have a readily determinable market value and all debt securities of a not-for-profit organization are reported at:

Accepted Answer

A)  Lower of cost or market. 
B)  Amortized cost. 
C)  Fair value. 
D)  Cost. 
A)  Lower of cost or market. 
B)  Amortized cost. 
C)  Fair value. 
D)  Cost.

Question 8

The FASB requires that if a financial intermediary has variance power it recognize a donation as a contribution payable on its financial statements.

Accepted Answer

A) True 
 B)False

Question 9

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established:

Accepted Answer

A)  By the FASB Codification. 
B)  When the FASB was created in 1974. 
C)  When the GASB was created in 1984. 
D)  In the AICPA's Statement of Auditing Standards No. 69 (hierarchy of GAAP). 
A)  By the FASB Codification. 
B)  When the FASB was created in 1974. 
C)  When the GASB was created in 1984. 
D)  In the AICPA's Statement of Auditing Standards No. 69 (hierarchy of GAAP).

Question 10

Under the FASB Codification a $5 million endowment that cannot be spent for 50 years should be classified as permanently restricted net assets.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses?

Accepted Answer

A)  Purpose. 
B)  Audience. 
C)  Time period. 
D)  Content. 
A)  Purpose. 
B)  Audience. 
C)  Time period. 
D)  Content.

Question 12

According to the FASB Codification,donated materials are generally not recognized as contributions by a not-for-profit organization.

Accepted Answer

A) True 
 B)False

Question 13

Explain when donated materials should be recognized as a contribution and as an expense by a nongovernmental not-for-profit organization.

Accepted Answer

FASB criteria for recognizing revenue fo

Question 14

A donor provides a large cash contribution that is to be used for acquisition of a new building.Under FASB standards,how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

Accepted Answer

A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Capital and related financing activity. 
A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Capital and related financing activity.

The FASB Codification requires the following financial statements for all not-for-profit organizations:

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is:

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years.Under FASB standards the pledge would be recognized as:

According to the information provided in the textbook,Beta Alpha Psi would be considered an other nonprofit organization (ONPO).

Which of the following would be considered "contribution revenue or support" of a not-for-profit organization under FASB standards?

The FASB requires investments in equity securities that have a readily determinable market value and all debt securities of a not-for-profit organization are reported at:

The FASB requires that if a financial intermediary has variance power it recognize a donation as a contribution payable on its financial statements.

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established:

Under the FASB Codification a $5 million endowment that cannot be spent for 50 years should be classified as permanently restricted net assets.

Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses?

According to the FASB Codification,donated materials are generally not recognized as contributions by a not-for-profit organization.

Explain when donated materials should be recognized as a contribution and as an expense by a nongovernmental not-for-profit organization.

A donor provides a large cash contribution that is to be used for acquisition of a new building.Under FASB standards,how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activitiesagency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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Exam 13: Accounting for Not-For-Profit Organizations

The FASB Codification requires the following financial statements for all not-for-profit organizations:

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is:

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years.Under FASB standards the pledge would be recognized as:

According to the information provided in the textbook,Beta Alpha Psi would be considered an other nonprofit organization (ONPO).

Which of the following would be considered "contribution revenue or support" of a not-for-profit organization under FASB standards?

The FASB requires investments in equity securities that have a readily determinable market value and all debt securities of a not-for-profit organization are reported at:

The FASB requires that if a financial intermediary has variance power it recognize a donation as a contribution payable on its financial statements.

Responsibility for establishing generally accepted accounting principles (GAAP)for nongovernmental,not-for-profit organizations rests with the FASB and was most clearly established:

Under the FASB Codification a $5 million endowment that cannot be spent for 50 years should be classified as permanently restricted net assets.

Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses?

According to the FASB Codification,donated materials are generally not recognized as contributions by a not-for-profit organization.

Explain when donated materials should be recognized as a contribution and as an expense by a nongovernmental not-for-profit organization.

A donor provides a large cash contribution that is to be used for acquisition of a new building.Under FASB standards,how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activitiesagency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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