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

Which of the following is not a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No. 116?

Donors to private not-for-profit entities are primarily concerned with which of the following performance measures?

The activities of private not-for-profits are commonly financed through voluntary contributions.

Voluntary health and welfare organizations promote the general health and well-being of the public.

Expenditures, encumbrances, and budgetary accounts are used by private not-for-profit organizations.

The FASB has the authority to set accounting standards for all of the following organizations except:

Which of the following isnot true regarding the Statement of Cash Flows for nongovernmental, not-for-profit organizations?

When might it be appropriate for a not-for-profit organization to report a surplus increase in net assets?

Conditional promises to give are recognized as revenue or support when the promise is made net of estimated uncollectible receivables.

The entry to record the expiration of program restrictions includes which of the following?

Assume that The Sandy Creek Nature Center, a private not-for-profit organization, started the fiscal year ending December 31, 2017 with $59,378 in temporarily restricted net assets. The amounts are restricted for the following: restricted for educational programs relating to preservation of wetlands $18,000. restricted for future equipment purchases $16,000 Fixed assets are recorded as unrestricted when acquired) and a promise to provide $5,000 each of the next six years for general support. Assume the pledge was made on December 31, 2016 and the present value of six January 1) payments discounted at 5 percent is $25,378. During the fiscal year ended December 31, 2017, the following transactions occur: a) The first $5,000 installment on the pledge receivable was received. b) Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $19,900 c) The $18,000 received in a prior year for equipment, together with an additional $25,500 was used to acquire equipment. d) Interest of 5% is recorded on the remaining balance of the pledge receivable. Required: Prepare the journal entries necessary for the above transactions:

Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution?

Which of the following organizations would not be subject to the level b accounting and reporting requirements of the AICPA's Audit and Accounting Guide: Not-for-Profit Organizations?

FASB Statement 124, Accounting for Certain Investments of Not-for-Profit Organizations, requires investments by a not-for-profit in debt securities and equity securities to be carried at fair value.

The financial statements of private not-for-profits are intended primarily for those who have a residual claim to the net assets of the organization.

Cash flows must be presented separately in the Statement of Cash Flows for the three classes unrestricted, temporarily restricted, and permanently restricted).

Examples of voluntary health and welfare organizations would include the Girl Scouts and the American Heart Association.

Which of the following is NOT a reason for which a not-for-profit organization would need to generate a surplus?

A membership pass to the YMCA a private not-for-profit organization includes unlimited rights to all facilities and a health magazine subscription. Non-members do not possess these rights. How must the YMCA account for membership dues?

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