107.Which of the following are not required disclosures in a Form 990?
A)A Statement of Functional Expense.
B)A discussion of program effectiveness.
C)A Statement of Revenues, Expenses and Changes in Net Assets.
D)None of the above. They are all required disclosures.
108.A tax-exempt organization is required to pay income taxes on
A)Profit that is earned.
B)Investment gains or losses.
C)Unrelated business income.
D)Contributions received.
109.Which of the following activities give rise to Unrelated Business Income Tax?
A)Investment income arising from investment of unrestricted funds.
B)Business operated for the convenience of employees and patients.
C)Sale of donated merchandise.
D)None of the above.
110.Which of the following may be deducted in computing income from unrelated business activities?
A)Ordinary and necessary business expenses.
B)$1,000 exemption.
C)Charitable contributions.
D)All of the above.
111.To apply for tax-exempt status, a non-profit organization must file:
A)IRS Form 501(c)(3).
B)IRS Form 990.
C)IRS Form 1023.
D)None of the above.
112.Which of the following is a prohibited activity for a Tax-exempt Organization?
A)Make a Profit.
B)File a tax return.
C)Give money away.
D)Make financial contributions to a political candidate.
113.A public charity is:
A)An organization founded and operated exclusively for public safety.
B)An organization that receives more than one-third of its support from a combination of contributions, membership fees, and gross receipts from exempt activities.
C)An organization operated exclusively for the benefit of a church.
D)All of the above are considered to be public charities.
114.Which of the following is an area of concern by the IRS with respect to tax-exempt organizations?
A)Cost allocations.
B)Excess executive compensation.
C)Organizations operating out of their tax-exempt purpose.
D)All the above.
115.Which of the following conditions would exempt income-producing activities from the Unrelated Business Income Tax (UBIT)?
A)Majority of labor is performed by paid employees.
B)The business sells donated merchandise.
C)The business is carried on regularly but is unrelated to the organization’s tax-exempt purpose.
D)The business is operated for a profit.
116.Which of the following is true concerning tax-exempt organizations with unrelated business income?
A)They may deduct the first $1,000 of unrelated business income.
B)They must include income from donated merchandise.
C)They must include investment income in computing their tax liability.
D)None of the above.
Evaluating Performance