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

FASB Statement 136 Transfer of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others provides guidance on how intermediary recipient organizations should record receipt of resources held for others. Briefly describe the issue and how such transfers should be recorded.

A private not-for-profit reports expenses in either the unrestricted net asset class or restricted net asset class, depending which program the expense was supporting.

If a donor selects a scholarship recipient, and then donates cash to a ballet school to fund that scholarship, the ballet school would:

Donated services should be considered revenue if the service creates or enhances a nonfinancial asset or requires a specialized skill which would have had to be purchased if not donated.

When should unconditional pledges be recorded as revenue?

When preparing the Statement of Cash Flows for a private not-for-profit organization, the direct method or indirect method may be used.

Which of the following is not a condition for recording donated services?

FASB standards require contributions to be recorded as revenue when the contributed money is actually received.

The residual equity section of Statement of Financial Position for private not-for-profits includes which accounts?

Which of the following is not true regarding accounting and financial reporting for nongovernmental, not-for-profit organizations?

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. In its Statement of Activities, the annual provision for depreciation should:

An intention to give such as being named in a will) is the same as an unconditional promise to give and can be recorded as revenue when the intention is made known.

Which of the following is not true regarding the treatment of multiyear pledges, according to FASB Statement 116?

Which of the following contributed services would probably not be recognized as contribution revenue?

The FASB requires that expenses of voluntary health and welfare organizations be reported according to function. Which of the following are FASB required function categories?

While many private not-for-profit organizations may use funds for internal purposes, the financial statements do not report separate funds.

Which of the following would not be recognized as contribution revenue by a private not-for-profit organization?

FASB standards require conditional promises to give to be recorded as revenue at the time the condition is satisfied.

How is the receipt of an unconditional pledge to contribute to a private not-for-profit organization recorded?

Which of the following financial statements is required for private not-for-profit organizations?