11.Historically, what was the pattern of reporting of not-for-profit organizations?
(1) Patterned after for-profit accounting
(2) Emphasis on separate fund types
(3) Disregard for the entire entity
A. 1 only.
B. 2 only.
C. 1 and 2 only.
D. 1, 2 and 3.
E. 2 and 3 only.
12.Which of the following statements is required for voluntary health and welfare organizations, but not for other not-for-profit organizations?
A. Statement of Activities and Changes in Net Assets.
B. Statement of Functional Expenses.
C. Statement of Financial Position.
D. Statement of Cash Flows.
E. Statement of Budget to Actual.
13.What are the three categories of net assets required by GAAP in reporting a not-for-profit organization?
A. Unrestricted, Temporarily Restricted, and Permanently Restricted.
B. Unrestricted, Restricted, and Fund Balance.
C. Restricted, Permanently Restricted, and Fund Balance.
D. Unrestricted, Temporarily Restricted, and Fund Balance.
E. None of these.
14.What is the basis of accounting used in reporting the Statement of Activities and Changes in Net Assets?
A. Cash basis.
B. Modified accrual basis.
C. Accrual basis.
D. Either cash basis or accrual basis, depending on the type of revenue.
E. Either modified accrual basis or accrual basis, depending on the type of revenue.
15.When are unconditional promises to give recognized as revenues?
A. In the period the promise is received.
B. In the period the promise is collected.
C. In the period in which the conditions on which they depend are substantially met.
D. In the period in which the conditions on which they depend have begun to be met.
E. Unconditional promises from potential donors are not revenues.
16.The following gifts are received in Year One by a not-for-profit organization:
I. $2,000 specified by the donor to be used to pay salaries.
II. $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
The salaries are paid in Year Two and the conference room furniture is purchased in Year One.
A. $2,000
B. $7,000
C. $12,000
D. $15,000
E. $17,000
17.The following gifts are received in Year One by a not-for-profit organization:
I. $2,000 specified by the donor to be used to pay salaries.
II. $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
A. $2,000.
B. $5,000.
C. $7,000.
D. $10,000.
E. $12,000.
18.How are investments in equity securities with readily determinable market values and their related unrealized gains and losses reported by a not-for-profit organization?
A. Lower of cost or market, with unrealized losses in the Statement of Activities.
B. Fair value, with unrealized gains and losses in the Statement of Activities.
C. Lower of cost or market, with unrealized losses in Temporarily Restricted Net Assets.
D. Cost, with unrealized gains and losses in the Statement of Activities.
19.Which statement below is not correct?
A. The accounting period in which pledged revenues are recognized is dependent on donor specifications.
B. The permanently restricted section of a nonprofit organization's net assets is set aside by donor restrictions.
C. A contributed asset is recognized as revenue by a nonprofit organization.
D. Depreciation expense is not recognized by nonprofit organizations.
E. Nonprofit organizations issue a statement of activities.
20.A gift to a not-for-profit school that is not restricted by the donor is credited to:
A. Fund Balance.
B. Deferred Revenues.
C. Contribution Revenues.
D. Non-Operating Revenues.
E. Encumbrances.
