Question 1

A not-for-profit organization receives a computer as a donation (valued at $2,000).Prepare the journal entry for the transaction.

Accepted Answer

The answer of A not-for-profit organization receives a computer as...

Question 2

What are the objectives of accounting for a voluntary health and welfare organization?

Accepted Answer

The objectives of accounting for a voluntary health and welfare organization are:(1)to provide contributors and potential contributors with a means of evaluating the use of resources by the organization and (2)to disclose how resources were acquired and used to accomplish the objectives of the organization.

Question 3

What are the three categories of net assets required by the FASB in reporting a not-for-profit organization?

Accepted Answer

A) Unrestricted,Temporarily Restricted,and Permanently Restricted. 
B) Unrestricted,Restricted,and Fund Balance. 
C) Restricted,Permanently Restricted,and Fund Balance. 
D) Unrestricted,Temporarily Restricted,and Fund Balance. 
E) None of the above. 
A) Unrestricted,Temporarily Restricted,and Permanently Restricted. 
B) Unrestricted,Restricted,and Fund Balance. 
C) Restricted,Permanently Restricted,and Fund Balance. 
D) Unrestricted,Temporarily Restricted,and Fund Balance. 
E) None of the above. A

Question 4

Which one of the following is a voluntary health and welfare organization?

Accepted Answer

A) Charity raising money for underprivileged children. 
B) Nursing home. 
C) Clinic. 
D) Hospital. 
E) Preschool. 
A) Charity raising money for underprivileged children. 
B) Nursing home. 
C) Clinic. 
D) Hospital. 
E) Preschool.

Question 5

When is recognition of contributions of artworks and historical treasures not required?

Accepted Answer

Statement 116 exempts the recording of t

Question 6

How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What revenues are recognized by voluntary health and welfare organizations?

Accepted Answer

Contributions are extremely important to

Question 7

How are equity securities with determinable market values and their related unrealized gains and losses reported,according to SFAS 124?

Accepted Answer

A) Lower of cost or market,with unrealized losses in the Statement of Activities. 
B) Fair value,with unrealized gains and losses in the Statement of Activities. 
C) Lower of cost or market,with unrealized losses in Temporarily Restricted Net Assets. 
D) Cost,with unrealized gains and losses in the Statement of Activities. 
A) Lower of cost or market,with unrealized losses in the Statement of Activities. 
B) Fair value,with unrealized gains and losses in the Statement of Activities. 
C) Lower of cost or market,with unrealized losses in Temporarily Restricted Net Assets. 
D) Cost,with unrealized gains and losses in the Statement of Activities.

Question 8

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit,and when control of the assets has been relinquished by the donor?

Accepted Answer

A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit cash,credit liability to beneficiary. 
D) debit cash,credit refundable advance. 
E) debit cash,credit contribution revenue. 
A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit cash,credit liability to beneficiary. 
D) debit cash,credit refundable advance. 
E) debit cash,credit contribution revenue.

Question 9

The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000.
Required:
Prepare the necessary journal entry to record the contractual adjustments.

Accepted Answer

The answer of The hospital estimated that contractual adjustments would...

Question 10

Which statement below is not correct?

Accepted Answer

A) The accounting period in which pledged revenues are recognized is dependent on donor specifications. 
B) The permanently restricted section of a nonprofit organization's net assets is set aside by donor restrictions. 
C) A contributed asset is recognized as revenue by a nonprofit organization. 
D) Depreciation expense is not recognized by nonprofit organizations. 
E) Nonprofit organizations issue a statement of activities. 
A) The accounting period in which pledged revenues are recognized is dependent on donor specifications. 
B) The permanently restricted section of a nonprofit organization's net assets is set aside by donor restrictions. 
C) A contributed asset is recognized as revenue by a nonprofit organization. 
D) Depreciation expense is not recognized by nonprofit organizations. 
E) Nonprofit organizations issue a statement of activities.

Question 11

What is the appropriate account to debit when reducing patient billings caused by arrangements with third party payors?

Accepted Answer

A) Contractual Adjustments. 
B) Allowance for uncollectible and reduced accounts. 
C) Patient Service Revenues. 
D) Account Receivable-Patients. 
E) Accounts Receivable-Third Party. 
A) Contractual Adjustments. 
B) Allowance for uncollectible and reduced accounts. 
C) Patient Service Revenues. 
D) Account Receivable-Patients. 
E) Accounts Receivable-Third Party.

Question 12

Which of the following is not a question individuals ask of not-for-profit organizations in considering whether to make a contribution?

Accepted Answer

A) Will donated funds be used effectively by the organization to accomplish its purpose? 
B) Will the donated funds be wasted? 
C) How much should this organization receive? 
D) Is this organization profitable? 
E) Is contributing to this charity a wise allocation of resources? 
A) Will donated funds be used effectively by the organization to accomplish its purpose? 
B) Will the donated funds be wasted? 
C) How much should this organization receive? 
D) Is this organization profitable? 
E) Is contributing to this charity a wise allocation of resources?

Question 13

$520,000 of the $2,720,000 was expected to be uncollectible.
Required:
Prepare the necessary journal entry to record the anticipated uncollectible amount.

Accepted Answer

The answer of $520,000 of the $2,720,000 was expected to...

Question 14

Reciprocal transfers where both parties give and receive something of value are

Accepted Answer

A) contributed services. 
B) unconditional promises to give. 
C) endowment transactions. 
D) exchange transactions. 
E) required contributions. 
A) contributed services. 
B) unconditional promises to give. 
C) endowment transactions. 
D) exchange transactions. 
E) required contributions.

Question 15

In this month,there were several patients that had no health insurance and due to their low income level,the hospital decided that $85,000 of receivables would not be collectible
Required:
Prepare the necessary journal entry to reflect the decision to consider the $85,000 as charity care.

Accepted Answer

The answer of In this month,there were several patients that...

Question 16

What is the main source of financial support for most voluntary health and welfare organizations?

Accepted Answer

Contributions (public support)

Question 17

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retainedby the donor?

Accepted Answer

A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit cash,credit liability to beneficiary. 
D) debit cash,credit refundable advance. 
E) debit cash,credit contribution revenue. 
A) debit expense-charitable contribution,credit cash. 
B) debit refundable advance to charity,credit cash. 
C) debit cash,credit liability to beneficiary. 
D) debit cash,credit refundable advance. 
E) debit cash,credit contribution revenue.

Question 18

The Yelton Center is a voluntary health and welfare organization.During 2008,unrestricted pledges of $780,000 were received by the center,sixty percent of which were payable in 2008,with the remainder payable in 2009 (for use in 2009).Officials estimated that fifteen percent of these pledges will be uncollectible.
Required:
How much should the Yelton Center report as revenue for 2008?

Accepted Answer

The answer of The Yelton Center is a voluntary health...

Question 19

A gift to a nonprofit school that is not restricted by the donor is credited in the general fund to:

Accepted Answer

A) Fund Balance. 
B) Deferred Revenues. 
C) Contributions Revenues. 
D) Nonoperating Revenues. 
E) Encumbrances. 
A) Fund Balance. 
B) Deferred Revenues. 
C) Contributions Revenues. 
D) Nonoperating Revenues. 
E) Encumbrances.

Question 20

REFERENCE: Ref.18_05
Wakefield Home is a private not-for-profit healthcare organization offering services for a fee.In the first quarter of 2008,Wakefield Home rendered services of $300,000 to patients.Of this amount 75% will be paid by patients,and $25,000 will be adjusted based on estimated insurance agreements.The remaining amount is to be paid by third party insurance providers.
-Record the journal entries that reflect all of this information.

Accepted Answer

The answer of REFERENCE: Ref.18_05
Wakefield Home is a private not-for-profit...

A not-for-profit organization receives a computer as a donation (valued at $2,000).Prepare the journal entry for the transaction.

What are the objectives of accounting for a voluntary health and welfare organization?

What are the three categories of net assets required by the FASB in reporting a not-for-profit organization?

Which one of the following is a voluntary health and welfare organization?

When is recognition of contributions of artworks and historical treasures not required?

How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What revenues are recognized by voluntary health and welfare organizations?

How are equity securities with determinable market values and their related unrealized gains and losses reported,according to SFAS 124?

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit,and when control of the assets has been relinquished by the donor?

The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000. Required: Prepare the necessary journal entry to record the contractual adjustments.

Which statement below is not correct?

What is the appropriate account to debit when reducing patient billings caused by arrangements with third party payors?

Which of the following is not a question individuals ask of not-for-profit organizations in considering whether to make a contribution?

$520,000 of the $2,720,000 was expected to be uncollectible. Required: Prepare the necessary journal entry to record the anticipated uncollectible amount.

Reciprocal transfers where both parties give and receive something of value are

In this month,there were several patients that had no health insurance and due to their low income level,the hospital decided that $85,000 of receivables would not be collectible Required: Prepare the necessary journal entry to reflect the decision to consider the $85,000 as charity care.

What is the main source of financial support for most voluntary health and welfare organizations?

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retainedby the donor?

A gift to a nonprofit school that is not restricted by the donor is credited in the general fund to:

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Estates and Trusts

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Exam 18: Accounting for Not-For-Profit Organizations

A not-for-profit organization receives a computer as a donation (valued at $2,000).Prepare the journal entry for the transaction.

What are the objectives of accounting for a voluntary health and welfare organization?

What are the three categories of net assets required by the FASB in reporting a not-for-profit organization?

Which one of the following is a voluntary health and welfare organization?

When is recognition of contributions of artworks and historical treasures not required?

How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What revenues are recognized by voluntary health and welfare organizations?

How are equity securities with determinable market values and their related unrealized gains and losses reported,according to SFAS 124?

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit,and when control of the assets has been relinquished by the donor?

The hospital estimated that contractual adjustments would reduce the amount collected from third-party payors to $1,710,000. Required: Prepare the necessary journal entry to record the contractual adjustments.

Which statement below is not correct?

What is the appropriate account to debit when reducing patient billings caused by arrangements with third party payors?

Which of the following is not a question individuals ask of not-for-profit organizations in considering whether to make a contribution?

$520,000 of the $2,720,000 was expected to be uncollectible. Required: Prepare the necessary journal entry to record the anticipated uncollectible amount.

Reciprocal transfers where both parties give and receive something of value are

In this month,there were several patients that had no health insurance and due to their low income level,the hospital decided that $85,000 of receivables would not be collectible Required: Prepare the necessary journal entry to reflect the decision to consider the $85,000 as charity care.

What is the main source of financial support for most voluntary health and welfare organizations?

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retainedby the donor?

A gift to a nonprofit school that is not restricted by the donor is credited in the general fund to:

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Estates and Trusts

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