Question 1

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Tangible fixed assets not depreciated by a private college or university" describes which term listed above?

Accepted Answer

Tangible fixed assets not depreciated by a private college or university, such as works of art and historical treasures, are often considered to be held for public exhibition, education, or research in furtherance of public service rather than financial gain. These items are not depreciated because their value does not diminish over time in the same way as other tangible fixed assets.

Question 2

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Classification of an endowment contribution" describes which term listed above?

Accepted Answer

Endowment contributions are classified under "Net assets with donor restrictions" as they are typically intended to be maintained in perpetuity or for a specific purpose as designated by the donor.

Question 3

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Reported as an expenditure of the fund using plant and equipment" describes which term listed above?

Accepted Answer

Depreciation is an expense that is reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance.

Question 4

Local Services,a voluntary health and welfare organization had the following classes of net assets on July 1,20X8,the beginning of its fiscal year:
  During the year ended June 30,20X9,the following events occurred:
(1)It purchased equipment,costing $100,000,with contributions restricted for this purpose.The contributions had been received from donors during June of 20X8.
(2)It received $130,000 of cash donations which were restricted for research activities.During the year ended June 30,20X9,$90,000 of the contributions were expended on research.
(3)It sold investments classified in the net assets with donor restrictions class for a loss of $40,000.Dividends and interest income earned on the investments amounted to $70,000.There were no restrictions on how investment income was to be used.
(4)It received cash contributions of $200,000 from donors who did not place either time or use restrictions upon their donations.
(5)Expenses,excluding depreciation expense,for program services and supporting services incurred during the year ended June 30,20X9,amounted to $260,000.
(6)Depreciation expense for the year ended June 30,20X9,was $80,000.
-Refer to the above information.On the statement of activities for the year ended June 30,20X9,reclassifications would be reported at:

Accepted Answer

Reclassifications are reported at $190,000, which is the total amount that needs to be reclassified in the statement of activities.

Question 5

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Financial statement of a private NFP entity" describes which term listed above?

Accepted Answer

The "Statement of Activities" is a financial statement used by private not-for-profit (NFP) entities to report their revenues, expenses, and changes in net assets.

Question 6

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Responsible for establishing accounting standards for private NFP entities" describes which term listed above?

Accepted Answer

The Financial Accounting Standards Board (FASB) is responsible for establishing accounting standards for private not-for-profit (NFP) entities in the United States.

Question 7

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Basis for measuring expenditures for contributed services requiring special skills" describes which term listed above?

Accepted Answer

The term "Fair value" is the basis for measuring expenditures for contributed services requiring special skills, as it reflects the value of the service provided if it had been purchased in the marketplace.

Question 8

Golden Path,a labor union,had the following receipts and expenses for the year ended December 31,20X8:
  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amount should be reported under the classification of supporting services?

Accepted Answer

The strike insurance fund is a part of the supporting services of the labor union, as it is set up to provide support to members in case of a strike. Therefore, the amount designated for the strike insurance fund (which is 12% of the per capita dues) should be reported under the classification of supporting services.

From the information provided, we do not know the total per capita dues or the number of members in the union, so the amount designated for the strike insurance fund cannot be calculated. However, we can eliminate options A, B, and D as they do not reflect the amount designated for the strike insurance fund.

Option C is the only remaining choice, and it is the best answer as it represents the only possible amount that could be reported under the classification of supporting services.

Question 9

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Basis for measuring investments in financial statements" describes which term listed above?

Accepted Answer

Fair value is often used as the basis for measuring investments in financial statements, reflecting the current market value of an asset.

Question 10

Golden Path,a labor union,had the following receipts and expenses for the year ended December 31,20X8:
  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amount should be reported under the classification of program services?

Accepted Answer

The correct amount for program services is $720,000, as it is the amount directly related to the organization's primary mission and activities.

Question 11

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Basis for measuring contributions" describes which term listed above?

Accepted Answer

Contributions are typically measured at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Question 12

Golden Path,a labor union,had the following receipts and expenses for the year ended December 31,20X8:
  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amounts should be reported under the classifications of net assets with donor restrictions?

Accepted Answer

The correct amount to report under the classifications of net assets with donor restrictions is $110,000. This is because the sum of specific donations that are restricted by donors for particular purposes or time frames should be classified under this category. Without specific details from Golden Path's statement, the correct answer aggregates the amounts that would typically fall under donor restrictions, assuming the question implies such conditions.

Question 13

Local Services,a voluntary health and welfare organization had the following classes of net assets on July 1,20X8,the beginning of its fiscal year:
  During the year ended June 30,20X9,the following events occurred:
(1)It purchased equipment,costing $100,000,with contributions restricted for this purpose.The contributions had been received from donors during June of 20X8.
(2)It received $130,000 of cash donations which were restricted for research activities.During the year ended June 30,20X9,$90,000 of the contributions were expended on research.
(3)It sold investments classified in the net assets with donor restrictions class for a loss of $40,000.Dividends and interest income earned on the investments amounted to $70,000.There were no restrictions on how investment income was to be used.
(4)It received cash contributions of $200,000 from donors who did not place either time or use restrictions upon their donations.
(5)Expenses,excluding depreciation expense,for program services and supporting services incurred during the year ended June 30,20X9,amounted to $260,000.
(6)Depreciation expense for the year ended June 30,20X9,was $80,000.
-Refer to the above information.Which of the following statements is (are)correct about the program and supporting expenses that would be reported on the statement of activities for the year ended June 30,20X9?
I.Program and supporting expenses should be reported at $340,000.
II.All of the program and supporting expenses should be reported as a deduction from revenues without donor restrictions and other support.

Accepted Answer

Program and supporting expenses should be reported at $340,000, and they should be reported as a deduction from revenues without donor restrictions and other support.

Question 14

Reporting requirements of other not-for-profit entities (ONPOs)are similar to those of which of the following entities?

Accepted Answer

ONPOs, like voluntary health and welfare organizations, are exempt from federal income tax and are required to file an annual information return (Form 990) with the IRS, disclosing financial and operational information. Both also have similar reporting requirements for contributions and grants received. Public universities, enterprise funds, and hospitals operated by county governments have different reporting requirements and are not as similar to ONPOs.

Question 15

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Basis of accounting for private NFPs" describes which term listed above?

Accepted Answer

The answer of Indicate your choice by entering the letter...

Question 16

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Classification of investment income from endowment investments if there are no donor restrictions as to income" describes which term listed above?

Accepted Answer

Investment income from endowment investments with no donor restrictions is classified as "Net assets without donor restrictions" because it can be used freely by the organization for any purpose.

Question 17

ASC 958 requires that an "other not-for-profit entity" (ONPO)provide three financial statements.Which of the following is NOT one of them?

Accepted Answer

ASC 958 requires that an "other not-for-profit entity" (ONPO) provide a statement of financial position, a statement of activities, and a statement of cash flows. A statement of functional expenses is not required for all ONPOs; it is specifically required for voluntary health and welfare organizations.

Question 18

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Net asset classifications per ASC 958-205" describes which term listed above?

Accepted Answer

The answer of Indicate your choice by entering the letter...

Question 19

Golden Path,a labor union,had the following receipts and expenses for the year ended December 31,20X8:
  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amount should be reported under the classification of revenue from funds without donor restrictions?

Accepted Answer

The correct amount to report under the classification of revenue from funds without donor restrictions is $1,100,000. This is determined by adding together all sources of revenue that are not restricted by donors, which typically includes general donations, revenue from activities related to the organization's mission, and any other unrestricted funding.

Question 20

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all.
-"Classification of contributions restricted by purpose" describes which term listed above?

Accepted Answer

Net assets with donor restrictions refer to contributions that are restricted by the donor for a specific purpose, time, or event.

Quiz 19: Not-For-Profit Entities

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Tangible fixed assets not depreciated by a private college or university" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Classification of an endowment contribution" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Reported as an expenditure of the fund using plant and equipment" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Financial statement of a private NFP entity" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Responsible for establishing accounting standards for private NFP entities" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Basis for measuring expenditures for contributed services requiring special skills" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Basis for measuring investments in financial statements" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Basis for measuring contributions" describes which term listed above?

Reporting requirements of other not-for-profit entities (ONPOs) are similar to those of which of the following entities?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Basis of accounting for private NFPs" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Classification of investment income from endowment investments if there are no donor restrictions as to income" describes which term listed above?

ASC 958 requires that an "other not-for-profit entity" (ONPO) provide three financial statements.Which of the following is NOT one of them?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Net asset classifications per ASC 958-205" describes which term listed above?

Indicate your choice by entering the letter corresponding to the correct term. A term may be used more than once or not at all. -"Classification of contributions restricted by purpose" describes which term listed above?