ACC 219 Chapter 14
Which of the following are used when the donor specifies an amount of income to be paid to the donor or to a designated third party for a specified period? Multiple choice question. Life income funds Annuity funds Loan funds Agency funds Endowment funds
Annuity funds
The FASB's objectives of financial reporting for not-for-profit organizations are to provide information useful in which of the following? Multiple select question. assessing economic resources, obligations, net resources and changes in them making resource allocation decisions assessing net profit provided by resources used assessing services and ability to provide services
assessing economic resources, obligations, net resources and changes in them making resource allocation decisions assessing services and ability to provide services
Subsequent to the date of purchase, the FASB requires that NFP organizations report investments in equity securities with a readily determinable market value at which of the following: Multiple Choice Lower of cost or market. Amortized cost. Fair value. Cost.
Fair value.
A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements? Multiple Choice Statement of activities. Statement of financial position. Statement of cash flows. Statement of functional expenses.
Statement of activities.
A donor-imposed condition exists if which of the following are present? Multiple select question. a barrier that must be overcome by the NFP a right of return or release a contribution in excess of $100,000
a barrier that must be overcome by the NFP a right of return or release
FASB ASC 958-805 provides that NFPs can recognize a combination of two or more NFP organizations as which of the following? Multiple select question. combination acquisition merger component unit
acquisition merger
The statement of ______ is an operating statement that presents all changes in net assets without donor restrictions, net assets with donor restrictions, and total net assets for the reporting period. Multiple choice question. financial position functional expenses activities
activities
Expenses in a not-for-profit organization are divided into functional classifications that include which of the following? Multiple select question. pledge support program endowed
support program
The FASB requires NFPs to report expenses by which of the following? Multiple choice question. both functional and natural classification functional classification only natural classification only neither functional nor natural classification
both functional and natural classification
An example of a(n) ______ to give is a pledge to make matching gifts. Multiple choice question. unconditional promise conditional promise
conditional promise
If an NFP organization has a controlling financial interest through directly or indirectly owning a voting majority in a for-profit entity, the NFP organization should do which of the following? Multiple choice question. use the method according to variable interest entity standards use the equity method to report investments in the entity consolidate the for-profit entity's financial information with its own
consolidate the for-profit entity's financial information with its own
Examples of required disclosures for NFPs include those relating to which of the following? Multiple select question. contingencies financial instruments exchange transactions warranties commitments
contingencies financial instruments commitments
Stakeholders of NFPs that use not-for-profit financial statements include which of the following? Multiple select question. Internal Revenue Service donors members lenders grantors
donors members lenders grantors
In the current year, the not-for-profit organization (NFP) How to Read Government Financial Reports received both cash of $1,000 and pledges of $2,000 to be used for teaching citizens how to read government financial reports. During the year the organization spent $1,500 teaching citizens to read financial statements. Assuming the NFP has a policy of spending its restricted resources first, in the current year what amount of contributions can be reclassified as without donor restrictions?
$1,000.
In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year? Multiple Choice $1,000. $1,600. $1,300. $2,300.
$2,300.
Which of the following would be reported as an Asset with Restrictions on Use? Multiple Choice A cash contribution for a program activity, such as diabetes research. A cash contribution for a new building. Cash restricted by debt covenants with lenders. Cash restricted by the board for purchase of new computer equipment.
A cash contribution for a new building.
A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years. Under FASB standards the pledge would be recognized as: Multiple Choice A contribution of $20,000 in each of the five years a contribution is made. A contribution of $100,000 in the year the pledge is made, adjusted for the estimated uncollectible amount. Deferred support of $100,000 in the year the pledge was made. A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value.
A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value.
In a local NFP elementary school's statement of cash flows, a contribution restricted for use on a new building project would be reported as Multiple Choice A financing activity. A capital and related financing activity. An investing activity. An operating activity.
A financing activity.
Which of the following apply to contributions with donor-imposed conditions? Multiple select question. They should be recognized as revenue when at least 50% of the conditions have been met. They cannot include stipulations limiting the discretion a recipient has to conduct an activity. A refundable advance liability should be recognized when assets are received before satisfying conditions. They cannot be recognized as revenue until all conditions have been met.
A refundable advance liability should be recognized when assets are received before satisfying conditions. They cannot be recognized as revenue until all conditions have been met.
According to GAAP, all not-for-profit organizations are required to prepare only the following statements: Multiple Choice A statement of activities, a balance sheet, and a statement of cash flows using accrual accounting. A statement of activities, a statement of cash flows, and a statement of functional expenses using accrual accounting. A statement of financial position and a statement of activities using accrual accounting. A statement of cash flows, a statement of activities, and a statement of financial position using either cash basis or accrual basis accounting.
A statement of activities, a balance sheet, and a statement of cash flows using accrual accounting.
A contribution is considered conditional if the donor agreement includes a barrier that the not-for-profit (NFP) must overcome before being entitled to the contribution. Which of the following would not indicate that a barrier exists? Multiple Choice A stipulation limiting the discretion a NFP has to conduct an activity. A stipulation that the NFP must use the contribution to support the mission of the organization. Correct A stipulation that the NFP must achieve a specified level of service or a specific outcome. A stipulation that the NFP must report a summary of the results from a research grant.
A stipulation that the NFP must use the contribution to support the mission of the organization.
Which of the following characteristics of not-for-profit organizations (NFPs) can be used to distinguish a nongovernmental from a governmental NFP? Multiple Choice Contributions by resource providers who do not expect a return on investment. Ability to impose taxes on citizens. Absence of ownership interests. All of the given characteristics are generally different for nongovernmental versus governmental NFPs.
Ability to impose taxes on citizens.
Not-for-profits can report expenses by nature and function: Multiple Choice In the notes to the financial statements. As a separate financial statement. In the statement of activities. All of the options are correct.
All of the options are correct.
Under FASB standards, which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization? Multiple Choice Land was donated to the Friends of the Forest Society for conversion into a nature trail. The original courthouse was donated to the Historical Preservation Society for conversion into a museum. An art collector donated a famous oil painting to a local art museum for display in its exhibit hall. A valuable coin collection was donated to the Youth for Conservation organization, which the organization plans to sell at current market prices.
An art collector donated a famous oil painting to a local art museum for display in its exhibit hall.
Which of the following organizations would be considered a nongovernmental not-for-profit organization? Multiple Choice An organization that provides shelter for people who have been victims of domestic violence and has been designated as a not-for-profit organization by the IRS. The board of trustees is composed of county commissioners, but in the case of the dissolution of the organization, any remaining funds would be donated to the United Way. Funding for the organization comes entirely from contributions. An organization that provides services to persons who wish to learn English as their second language. The organization is incorporated and is funded by fees charged to the learners. All profits are reinvested in the organization to provide further services. The organization has applied for not-for-profit status with the IRS. An organization classified by the IRS as a not-for-profit organization that employs individuals with disabilities in a workshop where the workers make custom stationery out of recycled goods. The organization receives cash and in-kind contributions as well as the proceeds from the sale of the stationery. The organization's board is composed of local businessmen and women. An organization that provides fund-raising services for other not-for-profit organizations. The organization is funded by fees for its services and was incorporated by the former chairperson of the local United Way organization. The organization distributes 40 percent of its profits to local charities.
An organization classified by the IRS as a not-for-profit organization that employs individuals with disabilities in a workshop where the workers make custom stationery out of recycled goods. The organization receives cash and in-kind contributions as well as the proceeds from the sale of the stationery. The organization's board is composed of local businessmen and women.
According to the FASB, net assets with donor restrictions are released from restrictions: Multiple Choice At the end of each fiscal year. As assets are spent for the purposes intended by the donor. When funds are returned to the donor. When all donor conditions have been met.
As assets are spent for the purposes intended by the donor.
The FASB states that depreciation expense in a not-for-profit organization should be: Multiple Choice Assigned to or allocated to the functions to which it relates. Reported under the management and general function. Disclosed in the notes to the financial statements. Allocated to program but not support functions.
Assigned to or allocated to the functions to which it relates.
Save Our Beaches, an NFP organization, prepared and distributed a trifold flyer to individuals and families at White Sands Beach, a popular beach for both residents and tourists. The flyer provided information about beach pollution and invited the public to participate in the organization's semiannual beach cleanup. In addition, one segment of the flyer solicited contributions to the organization to help fund its activities. The cost of the flyer and its distribution would most likely be considered Multiple Choice A fund-raising cost. A program cost. Both fund-raising and program costs. A management and general expense.
Both fund-raising and program costs.
How does the FASB require not-for-profit organizations to report expenses? Multiple Choice Natural classification, such as salaries, rent, and supplies. Functional classification, such as program and support. Management has the option of reporting using natural classification or functional classification. Both natural classification and functional classification must be reported.
Both natural classification and functional classification must be reported.
Responsibility for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations rests with the FASB and was most clearly established: Multiple Choice By the FASB Codification. When the FASB was created in 1974. When the GASB was created in 1984. In the AICPA's Statement of Auditing Standards No. 69 (hierarchy of GAAP).
By the FASB Codification.
Orlando Perez, president of a local information systems company, volunteered his time to help develop software for Best Friends, a local no-kill pet shelter. The software will allow the organization to track intake, placement, and statistics of animals in its three locations. Without Mr. Perez's assistance, Best Friends would have needed to hire someone to develop this software. Best Friends should record the value of Mr. Perez's time as Multiple Choice Program revenue and supporting services expense. Contribution revenue and supporting services expense. Program revenue and program expense. Contribution revenue and a program expense.
Contribution revenue and a program expense.
The following pledges were recorded for the current year fund drive for a voluntary health and welfare organization. Pledges of $39,000 were without donor restrictions and $10,200 were donor restricted for a special project to be undertaken in the current year. The entry to record these pledges would include which of the following? Multiple choice question. Credit to Contributions—Without Donor Restrictions for $39,000 Credit to Contributions—Without Donor Restrictions for $49,200 Debit to Contributions Receivable—Without Donor Restrictions for $49,200 Credit to Contributions—Temporarily Restricted for $39,000
Credit to Contributions—Without Donor Restrictions for $39,000
The following pledges were recorded for the current year fund drive for a voluntary health and welfare organization. Pledges of $39,000 were without donor restrictions and $10,200 were donor restricted for a special project to be undertaken in the current year. The entry to record these pledges would include which of the following? Multiple choice question. Debit to Contributions Receivable—Without Donor Restrictions for $39,000 Credit to Contributions—With Donor Restrictions for $39,000 Credit to Contributions—Temporarily Restricted for $39,000 Credit to Contributions—Without Donor Restrictions for $49,200
Debit to Contributions Receivable—Without Donor Restrictions for $39,000
When a nongovernmental not-for-profit organization spends money for the purpose of which an external donor intended, the expense is reported as a: Multiple Choice Decrease in net assets with donor restrictions. Decrease in net assets without donor restrictions. Decrease in current-restricted fund balance. Decrease in committed fund balance.
Decrease in net assets without donor restrictions.
Identify the correct statement regarding the notes to financial statements for NFPs. Multiple choice question. Disclosures include principles applicable to for-profit entities unless there is a specific exemption for not-for-profit organizations. The nature and amounts of unrestricted, temporarily restricted and permanently restricted net assets must always must be disclosed. A note reporting the detail of reclassifications, investments and promises to give is required.
Disclosures include principles applicable to for-profit entities unless there is a specific exemption for not-for-profit organizations.
The Uniform Prudent Management of Investment Funds Act (UPMIFA) provides rules on the use and reporting of: Multiple Choice Revenues. Endowment assets. Cash. Liabilities.
Endowment assets.
According to the FASB, a not-for-profit arts organization would report the account Provision for Uncollectible Pledges as which of the following? Multiple Choice Expense. Contra revenue. Contra asset. FASB allows management to determine its policy for reporting the Provision for Uncollectible Pledges.
Expense.
In accordance with FASB standards, securities donated to a not-for-profit organization should be recorded at the: Multiple Choice Donor's recorded amount. Fair value at the date of the gift, or the donor's recorded amount, whichever is lower. Fair value at the date of the gift, or the donor's recorded amount, whichever is higher. Fair value at the date of the gift.
Fair value at the date of the gift.
True or false: Similar to for-profit entities, NFPs are subject to variable interest entity standards. True false question. True False
False
A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would this contribution be reported by a not-for-profit organization on its statement of cash flows? Multiple Choice Operating activity. Investing activity. Financing activity. Capital and related financing activity.
Financing activity.
Which of the following statements is true regarding fund accounting for not-for-profit organizations (NFPs)? Multiple Choice Fund accounting can be used by NFPs for external purposes, but not internal purposes. Fund accounting can provide a good mechanism for facilitating reporting to donors. Fund accounting is not allowed. Fund accounting for internal and external reporting purposes has been replaced by FASB with the two classes of net assets (without donor restrictions, and net investment in restricted assets).
Fund accounting can provide a good mechanism for facilitating reporting to donors.
Which of the following is responsible for governmental not-for-profit organizations? Multiple choice question. GASB FASB AICPA
GASB
Which of the following statements are correct? Multiple select question. Hospitals and social service organizations may be governmental or nongovernmental. If an organization has the power to enact and enforce a tax levy, it is a governmental organization. Organizations that have the ability to issue debt with tax-exempt interest are always considered governmental organizations.
Hospitals and social service organizations may be governmental or nongovernmental. If an organization has the power to enact and enforce a tax levy, it is a governmental organization.
An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is: Multiple Choice An unconditional promise to give. Investment income. A restricted gift. An allocation of funds from the local United Way organization.
Investment income.
During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB, how would this pledge be recorded? Multiple Choice Contribution—With Donor Restrictions. Contribution—Without Donor Restrictions. Deferred Revenue. It would not be recorded.
It would not be recorded.
Under FASB standards how would a not-for-profit organization recognize a conditional pledge? Multiple Choice Debit Pledges Receivable and credit Contributions—With Donor Restrictions. Debit Pledges Receivable and credit Deferred Contributions. Debit Conditional Pledges Receivable and Credit Deferred Contributions. It would not recognize the conditional pledge until pledge conditions are substantially met.
It would not recognize the conditional pledge until pledge conditions are substantially met.
For financial reasons, two not-for-profit hospice organizations (hospices A and B) decided to combine to form a new not-for-profit organization. As a result of the combination, the assets and liabilities of the combined hospice were reported at the amounts that had been previously reported by A and B on their financial statements. Under the FASB, the combining of hospices A and B would be classified as which of the following? Multiple Choice Merger. Consolidation. Acquisition. Component unit.
Merger.
Which of the following would be considered "contribution revenue or support" of a not-for-profit organization under FASB standards? Multiple Choice Gain on disposal of capital assets. Money received from a fund-raising campaign. Correct Money received from rental of surplus office space. Investment earnings.
Money received from a fund-raising campaign.
Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away? Multiple Choice Board-designated net assets. Net assets without donor restrictions. Endowment assets. Net assets with donor restrictions.
Net assets with donor restrictions.
The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position? Multiple Choice Net assets with donor restrictions. Net assets without donor restrictions. Internal payable. The resources would not be reported on the statement of financial position.
Net assets without donor restrictions.
A wealthy donor promised $1 million to the local art museum to expand the size of its building, contingent on the museum obtaining a grant from the State Endowment for the Arts of at least $500,000. Upon completing a signed agreement with the donor, the museum should: Multiple Choice Record a debit to Contributions Receivable—With Donor Restrictions in the amount of $1,000,000. Record a debit to Contributions Receivable—With Donor Restrictions in the amount of $500,000. Not make a journal entry until the conditions of the agreement have been met. Either recording a debit to Contributions Receivable—With Donor Restrictions in the amount of $1,000,000 or not making a journal entry until the conditions of the agreement have been met is permissible, depending on the museum's established policy.
Not make a journal entry until the conditions of the agreement have been met.
Jane's Planes is an organization that provides air transportation for critically ill children. A friend of Jane's Planes, Richard Bucks, donated a plane to be used for whatever purpose the organization chooses. In addition, he donated a substantial amount of investments that were to be used strictly to generate income to help fund the organization's expenses. These donations would be included in the organization's net assets as
Plane - Without donor restrictions Investments - With donor restrictions
Many not-for-profit organizations attempt to classify fund-raising expenses as program services expenses by making the activities look educational in nature or advocating for the mission of the organization. For such expenses to be reported as program services expenses, they must meet which of the following three criteria: Multiple Choice Purpose, mission-related, and benefit to the public. Purpose, audience, and content. Purpose, expansion of donor base, and content. Reasonable, improvement in financial condition, and benefit to the public.
Purpose, audience, and content.
According to the FASB, how should unrealized gains on the investment portfolio of a not-for-profit organization be recognized? Multiple Choice Not recognized. Reported in the net asset section of the balance sheet. Reported according to whether the gains relate to trading, or held-to-maturity assets. Reported on the statement of activities.
Reported on the statement of activities.
Which of the following statements regarding the statement of cash flows are correct? Multiple select question. Unrestricted gifts are included in the investing activities section. Restricted net assets given for long-term purposes are included in the financing activities section. Acquisition of a building using restricted net assets is reported as an investing activity Donor-imposed restrictions are reported separately.
Restricted net assets given for long-term purposes are included in the financing activities section. Acquisition of a building using restricted net assets is reported as an investing activity
The Maryville Cultural Center recently conducted a successful talent show in which local talent performed for a nominal prize. The talent show is an ongoing major event and is central to the center's mission. The event raised $4,800 in gross revenue. Expenses related to the event included $1,000 to rent an auditorium, $1,200 to advertise the event, $500 for trophies and other awards for the winner and the runners up, and $100 for printing and mailing tickets. The center believes there was no monetary value received by donors (attendees). To report this event in its statement of activities, the center will report Multiple Choice Special event revenue of $4,800 and special event expense of $500. Special event revenue of $4,800 and fund-raising expense of $1,200. Special event revenue of $2,300 and fund-raising expense of $1,300. Special event revenue of $4,800, special event expense of $1,500, and fund-raising expense of $1,300.
Special event revenue of $4,800, special event expense of $1,500, and fund-raising expense of $1,300.
Which of the following statements is correct regarding reporting of special events and related direct costs under current FASB standards? Multiple Choice Special events and related direct costs must be reported separately at their gross amounts if they relate to the ongoing major operations of a not-for-profit. Correct Special events revenues are to be reported at gross amounts, even if direct costs are of a peripheral or incidental nature. With few exceptions special events revenues are reported net of related direct costs. Expenses of promoting and conducting special events should be netted directly against special events revenue.
Special events and related direct costs must be reported separately at their gross amounts if they relate to the ongoing major operations of a not-for-profit.
The FASB Codification requires the following financial statements for all not-for-profit organizations: Multiple Choice Statement of financial position, statement of activities, and statement of cash flows. Statement of financial position, statement of operations, and statement of cash flows. Statement of financial position, statement of activities, and statement of net assets. Statement of financial position, statement of revenues and expenses, and statement of cash flows.
Statement of financial position, statement of activities, and statement of cash flows.
A local CPA volunteered his time to prepare the Form 990 for an after-school development organization that serves disadvantaged children. If the services had not been donated the organization would have had to hire a CPA to prepare the return. In accordance with the FASB Codification, the value of the CPA's time devoted to helping the organization should be recorded as: Multiple Choice Contribution—With Donor Restrictions. Support Expense. Machinery & Equipment. It would not be recorded.
Support Expense.
A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year. When reporting the expenses by function, the $10,000 would be reported as: Multiple Choice A deduction from program revenue. Fund-raising expense. Program services expenses. Supporting services expenses.
Supporting services expenses.
Which of the following statements is correct? Multiple choice question. The FASB assumed primary responsibility for providing guidance on GAAP for not-for-profit entities. The FASB is responsible for both governmental and nongovernmental not-for-profit entities. The GASB is responsible for governmental organizations and all not-for-profit organizations.
The FASB assumed primary responsibility for providing guidance on GAAP for not-for-profit entities.
Which of the following statements is correct? Multiple choice question. The FASB is responsible for both governmental and nongovernmental not-for-profit entities. The GASB is responsible for governmental organizations and all not-for-profit organizations. The FASB assumed primary responsibility for providing guidance on GAAP for not-for-profit entities.
The FASB assumed primary responsibility for providing guidance on GAAP for not-for-profit entities.
A not-for-profit (NFP) organization acting as a financial intermediary receives a contribution. Under the FASB Codification the NFP would be most likely to recognize the contribution as a liability under which of the following situations? Multiple Choice The NFP has variance power. The NFP is acting as an agent, receiving the contribution on behalf of another organization. The NFP is financially interrelated with the organization on whose behalf it received the contribution. The NFP has a 51 percent interest in the organization on whose behalf it received the contribution.
The NFP is acting as an agent, receiving the contribution on behalf of another organization.
The mission of the not-for-profit organization, Save Our Butterflies Foundation, is to provide research and education concerning the conservation of butterflies. Which of the following expenses would be reported as a support expense by the Foundation? Multiple Choice The costs of exhibiting at the local Nature Conservancy annual fair held for the general public. The costs of depreciation on it butterfly facility. The cost of printed materials distributed to the local elementary schools on how to start butterfly gardens. The cost of printing and distributing its annual report.
The cost of printing and distributing its annual report.
In accordance with the FASB Codification, which of the following would not be classified as a support expense by the not-for-profit organization Save Our Lakes? Multiple Choice The cost of printing and distributing the annual report. The cost of a mailing to past contributors requesting donations for lakeshore cleanup. The cost of the annual lakeshore cleanup activities. The cost to have an attorney review the organization's by-laws.
The cost of the annual lakeshore cleanup activities.
A particular organization functions as an intermediary between donors and other beneficiary organizations. The intermediary organization must report contribution revenue from donors if Multiple Choice The organization has variance power. The organization elects to consistently report such donor gifts as contribution revenue. The beneficiary organization requests a delay in receiving the contribution from the intermediary organization. All these answer choices are correct.
The organization has variance power.
According to the FASB Codification, which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP) to be recorded as both a contribution and as an expense? Multiple Choice The service creates or enhances nonfinancial assets, such as a carpenter renovating a building. The service requires a specialized skill and is provided by someone who possesses the specialized skill, such as a lawyer preparing contracts. The service supplements the management function, such as an auditor preparing a program audit, which is not normally done. All of the given conditions must be met for contributed services to be recognized as a contribution and an expense.
The service requires a specialized skill and is provided by someone who possesses the specialized skill, such as a lawyer preparing contracts.
Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses? Multiple Choice Purpose. Audience. Time period. Content.
Time period.
True or False: FASB ASC 958-805 provides that NFPs can only recognize combinations as mergers if it is a combination of four or more NFP organizations. True false question. True False
True
Increases in net assets that relate to peripheral or incidental transactions of the entity and often are beyond the control of management are referred to as ______. Multiple choice question. revenues exchanges gains
gains
The statement of activities for an NFP should show ______. Multiple choice question. net assets released from restrictions as a separate section after Change in net assets net assets released from restrictions as a separate section under Revenues, gains and other support net assets released from restrictions as a separate section under Expenses and losses
net assets released from restrictions as a separate section under Revenues, gains and other support
Net assets are classified as which of the following? Multiple choice question. unrestricted net assets, donor restricted net assets, and permanently restricted net assets capital investments, net assets without donor restrictions and net assets with donor restrictions net assets without donor restrictions and net assets with donor restrictions net assets without donor restrictions board-designated net assets, and permanently restricted net assets
net assets without donor restrictions and net assets with donor restrictions
Donor-imposed restrictions are ______. Multiple choice question. not reported in the statement of cash flows separately reported in the statement of cash flows not separately reported in the statement of cash flows
not separately reported in the statement of cash flows
Fund categories described in the AICPA Audit and Accounting Guide: Not-for-Profit Organizations include which of the following? Multiple select question. plant funds annuity and life income funds endowment funds enterprise funds special revenue funds
plant funds annuity and life income funds endowment funds
Promises to give assets to an organization are commonly called ______ and can be conditional or unconditional. Multiple choice question. donations pledges gains contributions
pledges
In order for an NFP organization to be considered a governmental organization, it must have one or more of which characteristics? Multiple select question. popular election of officers or appointment of a controlling majority by a government the requirement to calculate, withhold, and pay taxes on revenue earned the power to enact and enforce a tax levy the potential for unilateral dissolution by a government with net assets reverting to a government
popular election of officers or appointment of a controlling majority by a government the power to enact and enforce a tax levy the potential for unilateral dissolution by a government with net assets reverting to a government
The statement of activities ______. Multiple choice question. presents assets restricted as to use presents changes in net assets without donor restrictions, net assets with donor restrictions, and total net assets for the reporting period reports operating, investing and financing activities broken down into proceeds from contributions restricted and other financing activities
presents changes in net assets without donor restrictions, net assets with donor restrictions, and total net assets for the reporting period
NFPs have long been required to support expenses by functional classifications such as which of the following major classifications? Multiple select question. endowment program gifts in kind support
program support
Assets that are restricted as to their use should be ______. Multiple choice question. reported separately from current assets on the statement of financial position included with current assets on the statement of financial position
reported separately from current assets on the statement of financial position
The FASB ______ to report expenses by their functional and natural classification. Multiple choice question. requires all NFP organizations requires only voluntary health and welfare organizations does not require any NFP organization
requires all NFP organizations
Assets that are not available for current operating purposes because donors have limited their use to a long-term purpose are considered ______. Multiple choice question. unrestricted restricted
restricted
The statement of cash flows for an NFP ______. Multiple choice question. should show a reconciliation of changes in net assets to net cash used for operating activities should show a reconciliation of net income to net cash flows if the direct method is used is not required to be prepared
should show a reconciliation of changes in net assets to net cash used for operating activities
A category of revenues arising from contributions of resources or nonexchange transactions that include only amounts for which the donor derives no tangible benefits from the recipient agency is referred to as ______. Multiple choice question. functional support exchange
support
The statement of financial position shows which of the following? Multiple choice question. total assets, total liabilities, and net assets total assets, total liabilities, and changes in fund balance assets, liabilities, other financing sources and uses, and net assets assets, liabilities, other financing sources and uses, and changes in fund balance
total assets, total liabilities, and net assets
