Exam 18: Accounting for Not-For-Profit Organizations

What is the appropriate account to credit when estimating a portion of health care organization receivables that will prove to be uncollectible?

Which entry would be the correct entry on the donor's books when the donor relinquishes control of an asset that it contributes to a not-for-profit organization?

A not-for-profit organization (Charity A) raises money for other charitable organizations. Charity A receives $10,000 to distribute to Charity B. B. Assume that the donor retains the right to revoke or redirect the gift. Prepare the journal entries for Charity A and Charity B. The entries should be for the gift when received by Charity A, and when the gift is distributed for Charity

Which entry would be the correct entry to record that a hospital has provided patient services for $200,000, of which 25% will be billed to a third party?

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 shown as increases as Temporarily Restricted Net Assets in Year One?

In accruing patient charges for the current month, which one of the following accounts should a hospital credit?

Which entry would be the correct entry to record pledges of $100,000 to a public television fundraiser? The public television organization estimates that 5% of the funds will be uncollectible.

Which one of the following financial statements is notrequired by GAAP regarding a voluntary health and welfare organization?

Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. In the first quarter of 2011, 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.

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

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

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

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

Which of the following types of health care organizations recognize depreciation expense?

When are unconditional promises to give recognized as revenues?

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

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

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, 2011: What should Dura Foundation report as supporting service expenses?

When an acquisition occurs in not-for-profit accounting, recognition of goodwill depends on:

For the month of December 2011, patient charges at Northfield Hospital (a not-for-profit hospital) were $2,720,000. Third-party payors were billed $1,800,000. $520,000 of the $2,720,000 was expected to be uncollectible. Required: Prepare the necessary journal entry to record the anticipated uncollectible amount.