Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

With respect to the Statement of Cash Flows for a private not-for-profit organization,donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

Accepted Answer

A) True 
 B)False

Question 3

A not-for-profit organization receiving donated fixed assets may record those assets as either unrestricted or temporarily restricted.

Accepted Answer

A) True 
 B)False

Question 4

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

Accepted Answer

A)  Time restrictions placed on the permanently restricted net assets have been met. 
B) . Purpose restriction placed on the permanently restricted net assets have been met. 
C) . Either of the above criteria (A and 
B)  have been met. 
D) . Permanently restricted net assets would not be reclassified to temporarily restricted net assets.

Question 5

A donor made a gift of cash to a private not-for-profit organization in 2014 with an expressed purpose restriction.All the funds were expended in 2014.The organization must:

Accepted Answer

A)  Record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted. 
B)  Record the gift and expense as unrestricted. 
C)  Record the gift and expense as temporarily restricted. 
D)  Use either of the methods described in (a) or (b).

Question 6

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

Accepted Answer

The answer of Identify three types of restrictions placed on...

Question 7

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

Accepted Answer

A)  An attorney donates her services to defend the Girl Scouts in a lawsuit. 
B)  A nurse donates her time to collect blood at an American Red Cross blood drive 
C)  An electrician donates his services to upgrade the electrical service at a mental health clinic. 
D)  State CPA society members hand out informational booklets at a shopping mall.

Question 8

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 date of receipt. 
B)  Market value at the balance sheet date. 
C)  Donor's cost. 
D)  The lower of a, b or c.

Question 9

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

Accepted Answer

A)  Meals on Wheels. 
B)  Big Brothers/Big Sisters. 
C)  Performing arts organizations. 
D)  Girl and Boy Scouts.

Question 10

What financial ratio is most commonly used to evaluate charitable organizations?

Accepted Answer

A)  Current assets / current liabilities. 
B)  Increase in net assets / total assets. 
C)  Program expenses / total expenses. 
D)  Total expenses / total revenues.

Question 11

Which of the following organizations would be subject to the accounting and reporting requirements of FASB Statements 116 (Accounting for Contributions)and 117 (Financial Reporting for Not-for-Profit Organizations)?

Accepted Answer

A)  The City of Hannibal Missouri. 
B)  St. Jude Children's Hospital. 
C)  Both of the above. 
D)  Neither (a) or (b) above.

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

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

With respect to the Statement of Cash Flows for a private not-for-profit organization,donor restricted cash that must be used for long term purposes is classified as cash flows from financing activities.

A not-for-profit organization receiving donated fixed assets may record those assets as either unrestricted or temporarily restricted.

Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?

A donor made a gift of cash to a private not-for-profit organization in 2014 with an expressed purpose restriction.All the funds were expended in 2014.The organization must:

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

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

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?

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

What financial ratio is most commonly used to evaluate charitable organizations?

Which of the following organizations would be subject to the accounting and reporting requirements of FASB Statements 116 (Accounting for Contributions) and 117 (Financial Reporting for Not-for-Profit Organizations) ?