Exam 18: Accounting and Reporting for Private Not-For-Profit Organizations

Unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition for

What financial statements would normally be prepared by a voluntary health and welfare organization?

What is the basis of accounting used in reporting the Statement of Activities and Changes in Net Assets?

Which account would be credited in recording a gift of medicine to a nursing home from an outside party?

A gift to a not-for-profit school that is not restricted by the donor is credited to:

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. In the first quarter of 2013, 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. The Home incurred the following liabilities: $110,000 salaries, $30,000 medical equipment, $10,000 utilities expense. Prepare the journal entries for these transactions.

A not-for-profit organization (Charity A) raises money for other charitable organizations. Charity A receives $10,000 to distribute to Charity B. Assume there are no donor rights to revoke or redirect the gift.

Which of the following statements is required for voluntary health and welfare organizations, but not for other not-for-profit organizations?

For a voluntary health and welfare organization, what are supporting services expenses?

The following gifts are received in Year One by a not-for-profit organization: I. $2,000 specified by the donor to be used to pay salaries. II. $10,000 for new conference room furniture. III. $5,000 to be held for one year before being expended. The salaries are paid in Year Two and the conference room furniture is purchased in Year One. How much should be reclassified on the Statement of Activities in Year Two from the Temporarily Restricted column to the Unrestricted column?

During 2013, the Garfield Humane Society, a voluntary health and welfare organization, received cash donations of $892,000 and membership dues of $62,000. A member of the Humane Society donated services valued at $8,000 that would otherwise have been performed by a paid staff member. A pet food manufacturer donated dog food valued at $16,400. The Humane Society received a gift of $140,000, to be used in building a new animal shelter. Also during 2013, investments held by the Humane Society earned interest of $2,000. Required: Prepare a schedule showing the amount that the Garfield Humane Society should have recorded for public support for 2013.

Which of the following types of health care organizations follow FASB Accounting Standards Codification for GAAP?

How are investments in equity securities with readily determinable market values and their related unrealized gains and losses reported by a not-for-profit organization?

What is the appropriate account to debit when reducing net patient service revenue as a result of arrangements with third party payors?

For a not-for-profit organization, when is recognition of contributions of artworks and historical treasures not required?

On a statement of functional expenses for a voluntary health and welfare organization, how are expenses classified?

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. In the first quarter of 2013, 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. A local business donated medical supplies to Wakefield with a value of $40,000. Prepare the journal entry for the receipt of these supplies.

Historically, what was the pattern of reporting of not-for-profit organizations? (1) Patterned after for-profit accounting (2) Emphasis on separate fund types (3) Disregard for the entire entity

Dura Foundation, a voluntary health and welfare organization dedicated to finding medical cures and supported by contributions from the general public, included the following costs in its Statement of Functional Expenses for the year ended December 31, 2013: What should Dura Foundation report as program service expenses?

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