Exam 10: Accounting for Private Not-For-Profit Organizations

The Statement of Functional expenses presents a matrix of expenses classified by function (various programs, fund-raising, etc) and by object or natural classification (salaries, supplies, travel, etc.).

In which of the following categories may Investment Income be reported by Not-for-Profit organizations: I Unrestricted net asset II Temporarily restricted net asset III Permanently restricted net asset

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

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

Unconditional promises to give are recognized when the promise is made net of estimated uncollectible receivables.

In 2009, a major drug company agreed to give a not-for-profit private college $200,000 to perform testing of a new drug. An advance payment of $150,000 was received in 2009. The college was to receive $1,000 per individual test. In 2009, the college completed 100 tests. How much revenue should the college report for 2009?

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

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

Which of the following is NOT a characteristic that distinguishes a not-for-profit organization from a business?

Which organization has standard setting authority over state and local governments, including governmentally related not-for-profit organizations such as hospitals colleges and universities

Not-for-profit organizations should have little to no profit.

Donated fixed assets that have not yet been depreciated may be recorded as either unrestricted or temporarily restricted.

Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution?

A Statement of Functional Expenses is required for Voluntary health and welfare organizations.

Expenditures, encumbrances and budgetary accounts are not used by not-for-profit organizations.

A Statement of Functional Expenses is required for voluntary health and welfare organizations.

Which of the following is not an example of a donor imposed restriction?

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

In 2010, Susan tells The Art Museum, a private not-for-profit organization, that she has named the museum in her will. When should the organization recognize the contribution revenue?

Who is the standard setting body for private not-for-profit organizations and what type of accounting method do they use?