Question 1

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

Accepted Answer

A)  Nonoperating Gain - Contributions. 
B)  Contractual Adjustments. 
C)  Patient Service Revenues. 
D)  Drugs and Medicines. 
E)  Nonoperating Revenues - Contribution. 
A)  Nonoperating Gain - Contributions. 
B)  Contractual Adjustments. 
C)  Patient Service Revenues. 
D)  Drugs and Medicines. 
E)  Nonoperating Revenues - Contribution. E

Question 2

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

Accepted Answer

Contributions (public support) represents the main source of financial support for most voluntary health and welfare organizations.

Question 3

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

Accepted Answer

A)  Whether control has been achieved by the acquiring not-for-profit entity. 
B)  Whether the acquired not-for-profit entity has the ability to generate significant amounts of earned revenue or whether it generates mostly contribution and investment revenue in the future. 
C)  Whether the acquired not-for-profit entity has the ability to generate significant amounts of both earned revenues and contribution revenues in the future. 
D)  Whether the acquired not-for-profit entity has a history of generating significant revenues of any type. 
E)  None of the above. Goodwill can only be recognized in an acquisition of a for-profit entity. 
A)  Whether control has been achieved by the acquiring not-for-profit entity. 
B)  Whether the acquired not-for-profit entity has the ability to generate significant amounts of earned revenue or whether it generates mostly contribution and investment revenue in the future. 
C)  Whether the acquired not-for-profit entity has the ability to generate significant amounts of both earned revenues and contribution revenues in the future. 
D)  Whether the acquired not-for-profit entity has a history of generating significant revenues of any type. 
E)  None of the above. Goodwill can only be recognized in an acquisition of a for-profit entity. B

Question 4

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?

Accepted Answer

A)  $2,000 
B)  $7,000 
C)  $12,000 
D)  $15,000 
E)  $17,000 
A)  $2,000 
B)  $7,000 
C)  $12,000 
D)  $15,000 
E)  $17,000

Question 5

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.

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E

Question 6

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

Accepted Answer

In a merger, two or more not-for-profit

Question 7

If the total acquisition value of an acquired not-for-profit organization is greater than the fair value of all identifiable net assets of the organization, and that organization's revenues are not earned by dues or other types of earned revenues, then the excess of acquisition value over identifiable net assets is immediately reported:

Accepted Answer

A)  As goodwill on the consolidated balance sheet. 
B)  As a pro-rata increase to the identifiable assets and liabilities acquired. 
C)  As a direct reduction in unrestricted net assets on the balance sheet. 
D)  As a reduction in unrestricted net assets on the statement of activities. 
E)  As an increase in other assets on the balance sheet. 
A)  As goodwill on the consolidated balance sheet. 
B)  As a pro-rata increase to the identifiable assets and liabilities acquired. 
C)  As a direct reduction in unrestricted net assets on the balance sheet. 
D)  As a reduction in unrestricted net assets on the statement of activities. 
E)  As an increase in other assets on the balance sheet.

Question 8

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 9

When are unconditional promises to give recognized as revenues?

Accepted Answer

A)  In the period the promise is received. 
B)  In the period the promise is collected. 
C)  In the period in which the conditions on which they depend are substantially met. 
D)  In the period in which the conditions on which they depend have begun to be met. 
E)  Unconditional promises from potential donors are not revenues. 
A)  In the period the promise is received. 
B)  In the period the promise is collected. 
C)  In the period in which the conditions on which they depend are substantially met. 
D)  In the period in which the conditions on which they depend have begun to be met. 
E)  Unconditional promises from potential donors are not revenues.

Question 10

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

Accepted Answer

Contributions are extremely important to

Question 11

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

Accepted Answer

A)  Bad Debt Expense. 
B)  Allowance for Uncollectible Accounts. 
C)  Patient Service Revenues. 
D)  Accounts Receivable. 
E)  Contractual Adjustments. 
A)  Bad Debt Expense. 
B)  Allowance for Uncollectible Accounts. 
C)  Patient Service Revenues. 
D)  Accounts Receivable. 
E)  Contractual Adjustments.

Question 12

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

Accepted Answer

Supporting services expenses are the cos

Question 13

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: $$\begin{array} { l r } 
\text { Fund-raising } & \$ 650,000 \
\text { Administrative (including } \$ 90,000 \text { for data processing) } & 390,000 \
\text { Research } & 130,000
\end{array}$$
-What should Dura Foundation report as program service expenses?

Accepted Answer

Program se

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

What criteria must be met before a voluntary health and welfare organization can recognize donated services as a means of support?

Accepted Answer

The criteria that must be met for a volu

Question 16

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: $$\begin{array} { l r } 
\text { Fund-raising } & \$ 650,000 \
\text { Administrative (including } \$ 90,000 \text { for data processing) } & 390,000 \
\text { Research } & 130,000
\end{array}$$
-What should Dura Foundation report as supporting service expenses?

Accepted Answer

The answer of Dura Foundation, a voluntary health and welfare...

Question 17

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

Accepted Answer

GAAP exempts the recording of gifts of a

Question 18

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors.
Required:
Prepare the journal entry to accrue patient charges for the month.

Accepted Answer

The answer of For May 2011, Carlington Hospital's charges for...

Question 19

What are the objectives of accounting for a not-for-profit organization?

Accepted Answer

The objectives of accounting for a not-f

Question 20

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.

Accepted Answer

The answer of For the month of December 2011, patient...

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

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

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

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.

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

Which statement below is not correct?

When are unconditional promises to give recognized as revenues?

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

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

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

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

What criteria must be met before a voluntary health and welfare organization can recognize donated services as a means of support?

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

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

What are the objectives of accounting for a not-for-profit organization?

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 - Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flo

Consolidated Financial Statements - Ownership Patterns and Income

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting for Estates and Trusts

Filters

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

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

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

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

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.

For not-for-profit organizations, what is the difference in identification of "control" between a merger and an acquisition?

Which statement below is not correct?

When are unconditional promises to give recognized as revenues?

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

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

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

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

What criteria must be met before a voluntary health and welfare organization can recognize donated services as a means of support?

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

For May 2011, Carlington Hospital's charges for patient services were $608,000, of which 80% was billed to third-party payors. Required: Prepare the journal entry to accrue patient charges for the month.

What are the objectives of accounting for a not-for-profit organization?

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 - Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flo

Consolidated Financial Statements - Ownership Patterns and Income

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting for Estates and Trusts

Filters