Question 1

Which of the following would not  be an example of a voluntary health and welfare organization?

Accepted Answer

A)  A state community college. 
B)  A private mental health facility. 
C)  A senior citizen center. 
D)  A food bank. 
A)  A state community college. 
B)  A private mental health facility. 
C)  A senior citizen center. 
D)  A food bank.

Question 2

Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities?

Accepted Answer

A)  GASB. 
B)  AICPA. 
C)  FASB 
D)  SEC. 
A)  GASB. 
B)  AICPA. 
C)  FASB 
D)  SEC.

Question 3

Private not-for-profits use the modified accrual basis and do not record fixed assets or long-term debt.

Accepted Answer

A) True 
 B)False

Question 4

Currently, FASB standards assure that not-for-profit financial statements are relatively standardized across industries.

Accepted Answer

A) True 
 B)False

Question 5

The FASB requires private not-for-profit organizations to report net assets the excess of assets over liabilities) separated by unrestricted, temporarily restricted and permanently restricted.

Accepted Answer

A) True 
 B)False

Question 6

A Statement of Functional Expenses is required for

Accepted Answer

A)  Voluntary health and welfare organizations. 
B)  Tax agencies. 
C)  State governments. 
D)  Colleges and universities. 
A)  Voluntary health and welfare organizations. 
B)  Tax agencies. 
C)  State governments. 
D)  Colleges and universities.

Question 7

Which of the following pledges of support would not be recognized in the year the pledge was made?

Accepted Answer

A)  An unconditional pledge restricted to a particular year in the future. 
B)  A pledge with no restrictions, but conditional on receiving matching pledges. 
C)  An unconditional pledge restricted to a particular purpose. 
D)  None of the above - all would be recognized. 
A)  An unconditional pledge restricted to a particular year in the future. 
B)  A pledge with no restrictions, but conditional on receiving matching pledges. 
C)  An unconditional pledge restricted to a particular purpose. 
D)  None of the above - all would be recognized.

Question 8

Which of the following factors, if present, would indicate that a transaction is not a contribution?

Accepted Answer

A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received. 
A)  The resource provider received value in exchange. 
B)  The resource provider entered into the transaction voluntarily. 
C)  The transfer of assets was unconditional. 
D)  The organization has discretion in the use of the assets received.

Question 9

Generally speaking, not-for-profit organizations record and measure transactions and events in the same manner as commercial enterprises. They do, however, differ from commercial enterprises in two important ways. Which of the following is one of those differences?

Accepted Answer

A)  Not-for-profit organizations receive considerable amounts of resources from the government. 
B)  Not-for-profit organizations do not record revenues until money is actually received. 
C)  Donors frequently impose restrictions on the use of donated resources. 
D)  Commercial enterprises use accrual accounting and not-for-profits use modified accrual accounting. 
A)  Not-for-profit organizations receive considerable amounts of resources from the government. 
B)  Not-for-profit organizations do not record revenues until money is actually received. 
C)  Donors frequently impose restrictions on the use of donated resources. 
D)  Commercial enterprises use accrual accounting and not-for-profits use modified accrual accounting.

Question 10

FASB requires multiyear pledges to be recorded at the present value of the future collections.

Accepted Answer

A) True 
 B)False

Question 11

FASB Statement 164 Not-for-Profit Entities: Mergers and Acquisitions requires mergers and acquisitions to be recorded using the carryover method.

Accepted Answer

A) True 
 B)False

Question 12

The AICPA has primary standard-setting authority over private not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

Accepted Answer

A)  The FASB describes functions as either program or supporting. 
B)  Major program classifications should be shown in the Statement of Activities or in the notes. 
C)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
D)  Expenses are reported by function in the Statement of Activities or in the notes. 
A)  The FASB describes functions as either program or supporting. 
B)  Major program classifications should be shown in the Statement of Activities or in the notes. 
C)  Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate. 
D)  Expenses are reported by function in the Statement of Activities or in the notes.

Question 14

The institution's governing board decided to create an endowment from contributed funds, this is called an ________ and the funds are unrestricted.

Accepted Answer

A)  Endowment. 
B)  Term endowment. 
C)  Quasi-endowment. 
D)  None of the above. 
A)  Endowment. 
B)  Term endowment. 
C)  Quasi-endowment. 
D)  None of the above.

Question 15

Uptown Church received a donation of marketable equity securities from a church member. In reviewing the financial press, it is determined that the securities had appreciated during the year. At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

Accepted Answer

A)  Market value at the balance sheet date. 
B)  Donor's cost. 
C)  Market value at the date of receipt. 
D)  The lower of cost or market. 
A)  Market value at the balance sheet date. 
B)  Donor's cost. 
C)  Market value at the date of receipt. 
D)  The lower of cost or market.

Question 16

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding the Statement of Financial Position for nongovernmental, not-for-profit organizations?

Accepted Answer

A)  The Statement must display assets and liabilities separated between the categories of unrestricted, temporarily restricted, and permanently restricted. 
B)  The Statement must display totals for net assets separated between the categories of unrestricted, temporarily restricted, and permanently restricted. 
C)  Both A & B above. 
D)  Neither A nor B above. 
A)  The Statement must display assets and liabilities separated between the categories of unrestricted, temporarily restricted, and permanently restricted. 
B)  The Statement must display totals for net assets separated between the categories of unrestricted, temporarily restricted, and permanently restricted. 
C)  Both A & B above. 
D)  Neither A nor B above.

Question 18

A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:

Accepted Answer

A)  Record the building as permanently restricted. 
B)  Record the building as temporarily restricted. 
C)  Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed. 
D)  Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets. 
A)  Record the building as permanently restricted. 
B)  Record the building as temporarily restricted. 
C)  Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed. 
D)  Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.

Question 19

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

Accepted Answer

A) True 
 B)False

Question 20

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted, temporarily restricted and permanently restricted.

Accepted Answer

A) True 
 B)False

Which of the following would not be an example of a voluntary health and welfare organization?

Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities?

Private not-for-profits use the modified accrual basis and do not record fixed assets or long-term debt.

Currently, FASB standards assure that not-for-profit financial statements are relatively standardized across industries.

The FASB requires private not-for-profit organizations to report net assets the excess of assets over liabilities) separated by unrestricted, temporarily restricted and permanently restricted.

A Statement of Functional Expenses is required for

Which of the following pledges of support would not be recognized in the year the pledge was made?

Which of the following factors, if present, would indicate that a transaction is not a contribution?

Generally speaking, not-for-profit organizations record and measure transactions and events in the same manner as commercial enterprises. They do, however, differ from commercial enterprises in two important ways. Which of the following is one of those differences?

FASB requires multiyear pledges to be recorded at the present value of the future collections.

FASB Statement 164 Not-for-Profit Entities: Mergers and Acquisitions requires mergers and acquisitions to be recorded using the carryover method.

The AICPA has primary standard-setting authority over private not-for-profit organizations.

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

The institution's governing board decided to create an endowment from contributed funds, this is called an ________ and the funds are unrestricted.

Uptown Church received a donation of marketable equity securities from a church member. In reviewing the financial press, it is determined that the securities had appreciated during the year. At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

Which of the following is true regarding the Statement of Financial Position for nongovernmental, not-for-profit organizations?

A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted, temporarily restricted and permanently restricted.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 10: Accounting for Private Not-For-Profit Organizations

Which of the following would not be an example of a voluntary health and welfare organization?

Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities?

Private not-for-profits use the modified accrual basis and do not record fixed assets or long-term debt.

Currently, FASB standards assure that not-for-profit financial statements are relatively standardized across industries.

The FASB requires private not-for-profit organizations to report net assets the excess of assets over liabilities) separated by unrestricted, temporarily restricted and permanently restricted.

A Statement of Functional Expenses is required for

Which of the following pledges of support would not be recognized in the year the pledge was made?

Which of the following factors, if present, would indicate that a transaction is not a contribution?

Generally speaking, not-for-profit organizations record and measure transactions and events in the same manner as commercial enterprises. They do, however, differ from commercial enterprises in two important ways. Which of the following is one of those differences?

FASB requires multiyear pledges to be recorded at the present value of the future collections.

FASB Statement 164 Not-for-Profit Entities: Mergers and Acquisitions requires mergers and acquisitions to be recorded using the carryover method.

The AICPA has primary standard-setting authority over private not-for-profit organizations.

Which of the following is not correct with respect to the reporting of expenses for a private not-for-profit?

The institution's governing board decided to create an endowment from contributed funds, this is called an ________ and the funds are unrestricted.

Uptown Church received a donation of marketable equity securities from a church member. In reviewing the financial press, it is determined that the securities had appreciated during the year. At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

A Statement of Functional Expenses is not required for private voluntary health and welfare organizations.

Which of the following is true regarding the Statement of Financial Position for nongovernmental, not-for-profit organizations?

A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:

FASB statement 116 requires unconditional pledges of support to be recorded as revenue when the contribution is promised.

The FASB requires private not-for-profit organizations to report individual assets and liabilities separated by unrestricted, temporarily restricted and permanently restricted.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters