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

With respect to the Statement of Cash Flows for a private not-for-profit organization, the purchase of equipment would be considered an investing activity.

The Statement of Functional Expenses:

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

Which of the following statements isnot accurate with respect to the recording of expenses for a not-for-profit?

Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides: Not-for-Profit Organizations and Health Care Organizations.

The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

Which of the following is not a characteristic that distinguishes a private not-for-profit organization from a business?

FASB Statement 124, Accounting for Certain Investments of Not-for-Profit Organizations, require that investments in equity securities with readily determinable values be reported at fair value.

Fixed assets may be recorded by a private not-for-profit as temporarily restricted or unrestricted, depending on the policy of the organization.

Private not-for-profits must follow all applicable FASB standards in recording transactions.

Contrast the reporting of mergers and acquisitions under the rules established by FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions?

Private not-for-profits must follow all applicable ____ standards in recording transactions.

Which of the following statements is not correct with respect to conditional and unconditional pledges

Performing arts organizations are an example of other private not-for-profit organizations.

Below are the complete set of published financial statements taken from the annual report of the Hillsdale Museum. The statements do not comply with generally accepted accounting principles for private not-for-profits in a number of ways. Review these statements and describe instances in which the statements fail to comply with accepted accounting standards. You must be able to justify your assertions - for example you cannot say they failed to capitalize if there is no evidence they have a qualifying lease. Example: 1) The financial statements contain no note disclosures. The notes are an integral part of the financial statements and many individual disclosures are required under FASB standards.

What are the revenue recognition requirements for: 1) unconditional promises to give i.e. pledges, 2) conditional promises to give, 3) multi-year pledges, 4) donated services, and 5) donated materials or fixed assets.

The AICPA has published two audit and accounting guides: Not-for-Profit Organizations Not-for-Profit Guide) and Health Care Entities Health Care Guide).

Private not-for-profits must follow all applicable FASB standards in recording transactions plus specific standards set forth by the FASAB.

Which of the following is not one of the specific disclosure requirements for private not-for-profits?

With respect to a not-for-profit that holds contributions for others, which of the following is true?