Exam 14: Not-For-Profit Organizations Regulatory, taxation, and Performance Issues

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 NPO but the entire amount may be spent right away?

Museums and religious organizations must capitalize and report in their balance sheets assets such as works of art,historical treasures,historical archives,and similar collectible items if they are held for public inspection.

Distinguish not-for-profit organizations from entities in the governmental and commercial sectors of the U.S.economy.

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

Which of the following is not one of the criteria specified in AICPA Statement of Position 98-2 that provides guidance on when joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses?

Depreciation expense in a not-for-profit organization should be

Temporarily restricted net assets are released from restrictions

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

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.

Not-for-profit organizations should be conservative and record pledges as support (contributions)only when received in cash.

Which of the following statements is true regarding fund accounting for not-for-profit organizations (NPOs)?

A not-for-profit organization that follows GAAP must display the changes in all classes of net assets on the

Which of the following statements is not a true statement about reporting of financially related not-for-profit entities?

Expense amounts by natural classification can be determined from the statement of functional expenses,as can the expense amounts for program services and supporting services categories.

SFAS No.117 requires that support from special events,if related to the central ongoing and major activities of the organization,and related direct costs,be reported at their gross amounts in the statement of activities rather than reporting the special events support net of direct costs.

Which of the following would be considered "contribution revenue or support" of an NPO?