Question 1

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Identify three types of restrictions placed on temporarily restricted net assets and outline the accounting requirements for each type.

Accepted Answer

Time Restricted: Contributions restricte

Question 4

A donor gave equipment valued at $60,000 at the beginning of 2017 to a private not-for-profit organization. The equipment had a 10-year life and depreciation of $6,000 was charged during 2017. At the end of the year, the net assets to be reported in unrestricted net assets related to this equipment would be:

Accepted Answer

A)  $60,000. 
B)  $54,000. 
C)  $ 0. 
D)  Either $54,000 or $0, depending upon the policy of the organization 
A)  $60,000. 
B)  $54,000. 
C)  $ 0. 
D)  Either $54,000 or $0, depending upon the policy of the organization

Question 5

In which of the following categories may Investment Income be reported by Not-for-Profit organizations:
I) Unrestricted net asset
II) Temporarily restricted net asset
III) Permanently restricted net asset
A) Only I.
B) Only I & II.
C) Only 1 & III.
D) I, II & III.

Accepted Answer

D
Explanation: Investment inco

Question 6

What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?

Accepted Answer

Examples of the activities covered by th

Question 7

Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity, such as Public Education?

Accepted Answer

A)  The purpose of the mailing includes accomplishing program functions. 
B)  The audience is selected based on characteristics other than ability to make contributions. 
C)  The mailing calls for specific action by the recipient that is consistent with the goals of the not-for-profit's mission. 
D)  All of the above. 
A)  The purpose of the mailing includes accomplishing program functions. 
B)  The audience is selected based on characteristics other than ability to make contributions. 
C)  The mailing calls for specific action by the recipient that is consistent with the goals of the not-for-profit's mission. 
D)  All of the above.

Question 8

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus increase in net assets)?

Accepted Answer

A)  To establish working capital. 
B)  To retire debt. 
C)  Expand or replace physical facilities. 
D)  All of the above. 
A)  To establish working capital. 
B)  To retire debt. 
C)  Expand or replace physical facilities. 
D)  All of the above.

Question 9

Which of the following are required specific disclosure requirements for private not-for-profits?

Accepted Answer

A)  The amount of unconditional promises i.e., pledges receivable due in less than one year, one to five years, and more than five years from the balance sheet date; 
B)  Detailed information regarding the nature of temporarily and permanently restricted resources. 
C)  The total of conditional amounts pledged. 
D)  All of the above are required disclosures when applicable. 
A)  The amount of unconditional promises i.e., pledges receivable due in less than one year, one to five years, and more than five years from the balance sheet date; 
B)  Detailed information regarding the nature of temporarily and permanently restricted resources. 
C)  The total of conditional amounts pledged. 
D)  All of the above are required disclosures when applicable.

Question 10

In 2017, a major drug company agreed to give a not-for-profit private college $420,000 to perform testing of a new drug. An advance payment of $335,000 was received in 2017. The college was to receive $1,500 per individual test. In 2017, the college completed 130 tests. How much revenue should the college report for 2017?

Accepted Answer

A)  $ 195,000 
B)  $ 200,000 
C)  $ 335,000 
D)  $ 420,000 
A)  $ 195,000 
B)  $ 200,000 
C)  $ 335,000 
D)  $ 420,000

Question 11

Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?

Accepted Answer

A)  Assigned, Committed, and Unrestricted. 
B)  Unrestricted, temporarily restricted and Permanently restricted. 
C)  Net investment in capital assets, Restricted, and Unrestricted. 
D)  Partially Restricted, Temporarily Restricted, Unrestricted. 
A)  Assigned, Committed, and Unrestricted. 
B)  Unrestricted, temporarily restricted and Permanently restricted. 
C)  Net investment in capital assets, Restricted, and Unrestricted. 
D)  Partially Restricted, Temporarily Restricted, Unrestricted.

Question 12

A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

Accepted Answer

A)  Record the $60,000 cash and credit a liability. 
B)  Record the $60,000 cash and credit temporarily restricted revenue. 
C)  Do either a or b, depending upon the policy of the not-for-profit. 
D)  Not record the transaction, because the money is going directly to the intended recipient. 
A)  Record the $60,000 cash and credit a liability. 
B)  Record the $60,000 cash and credit temporarily restricted revenue. 
C)  Do either a or b, depending upon the policy of the not-for-profit. 
D)  Not record the transaction, because the money is going directly to the intended recipient.

Question 13

All contributed services are recognized as revenue.

Accepted Answer

A) True 
 B)False

Question 14

Assume Towne Center Art Museum which has a December 31st year end) received the following contributions in 2017. Prepare journal entries to record these events and any year-end adjusting journal entries resulting from the events.
a) Unrestricted pledges of support were received in the amount of $280,000. All of these are due within the year and it is estimated that 6% will ultimately prove to be uncollectible.
b) 600 Memberships were sold to the public in the amount of $40 each. Membership provides the individual with a monthly magazine and other benefits. The estimated fair value of member benefits is $15. The member year runs from July 1 to June 30.
c) A local carpenter donated supplies and labor with values of $25,000 and $20,000 respectively) to construct a new exhibition area. Fixed assets are classified as unrestricted net assets.
d) On April 1, 2017 a local businessman made a pledge payable in a future period. The pledge is restricted in purpose and has a present value of $105,000 effective interest rate of 6%).

Accepted Answer

Question 15

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Accepted Answer

A)  City libraries. 
B)  Political parties. 
C)  Voluntary health and welfare organizations. 
D)  Private foundations. 
A)  City libraries. 
B)  Political parties. 
C)  Voluntary health and welfare organizations. 
D)  Private foundations.

Question 16

Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?

Accepted Answer

A)  Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing. 
B)  If the direct method is used, the not-for-profit must also present a reconciliation between total change in net assets and cash flows from operating activities. 
C)  Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories. 
D)  None of the above; all are true. 
A)  Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing. 
B)  If the direct method is used, the not-for-profit must also present a reconciliation between total change in net assets and cash flows from operating activities. 
C)  Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories. 
D)  None of the above; all are true.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale. In recording the sale, Care should:

Accepted Answer

A)  Record a loss of $10,000. 
B)  Record a gain of $10,000. 
C)  Record a loss of $5,000. 
D)  Record a gain of $5,000. 
A)  Record a loss of $10,000. 
B)  Record a gain of $10,000. 
C)  Record a loss of $5,000. 
D)  Record a gain of $5,000.

Question 19

Net Assets must be presented separately in the Statement of Activities for the three classes unrestricted, restricted, and net investment in capital assets).

Accepted Answer

A) True 
 B)False

Question 20

Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.

Accepted Answer

A)  GASB & Accrual. 
B)  GASB & Modified Accrual. 
C)  FASB & Modified Accrual. 
D)  FASB & Accrual. 
A)  GASB & Accrual. 
B)  GASB & Modified Accrual. 
C)  FASB & Modified Accrual. 
D)  FASB & Accrual.

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

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

Identify three types of restrictions placed on temporarily restricted net assets and outline the accounting requirements for each type.

In which of the following categories may Investment Income be reported by Not-for-Profit organizations: I) Unrestricted net asset II) Temporarily restricted net asset III) Permanently restricted net asset A) Only I. B) Only I & II. C) Only 1 & III. D) I, II & III.

What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?

Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity, such as Public Education?

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus increase in net assets)?

Which of the following are required specific disclosure requirements for private not-for-profits?

Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?

A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

All contributed services are recognized as revenue.

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?

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

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale. In recording the sale, Care should:

Net Assets must be presented separately in the Statement of Activities for the three classes unrestricted, restricted, and net investment in capital assets).

Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.

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

Contributions of assets other than cash to a private not-for-profit are recorded at the donor's basis

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

Identify three types of restrictions placed on temporarily restricted net assets and outline the accounting requirements for each type.

In which of the following categories may Investment Income be reported by Not-for-Profit organizations: I) Unrestricted net asset II) Temporarily restricted net asset III) Permanently restricted net asset A) Only I. B) Only I & II. C) Only 1 & III. D) I, II & III.

What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?

Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity, such as Public Education?

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus increase in net assets)?

Which of the following are required specific disclosure requirements for private not-for-profits?

Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?

A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

All contributed services are recognized as revenue.

Which of the following organizations does not follow the AICPA's Not-for-Profit Guide?

Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?

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

Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale. In recording the sale, Care should:

Net Assets must be presented separately in the Statement of Activities for the three classes unrestricted, restricted, and net investment in capital assets).

Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.

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