108. A donor gave $ 1,000,000 to a private not-for-profit organization to be held in endowment. In addition, the governing board permanently designated $ 500,000 to the endowment. In the Statement of Financial Position, how should these amounts be classified?
A)Permanently Restricted: $1,500,000; Unrestricted: $ - 0 -
B)Permanently Restricted: $1,000,000; Unrestricted: $ 500,000
C)Permanently Restricted: $ 500,000; Unrestricted: $1,000,000
D)Permanently Restricted: $ - 0 ; Unrestricted: $1,500,000
109. The FASB has the authority to set accounting standards for all of the following organizations except:
A)Political parties..
B)For profit hospitals.
C)City owned hospital
D)Trade associations.
110. Which of the following would not be an example of a voluntary health and welfare organization?
A)A state community college.
B)A private mental health facility.
C)A family planning agency.
D)A food bank.
111. Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity, such as Public Education?
A)The purpose of the mailing includes accomplishing program functions.
B)The audience is selected based on characteristics other than ability to make contributions.
C)The mailing calls for specific action by the recipient that is consistent with the goals of the not-for-profit's mission.
D)All of the above.
112.Which of the following is not a characteristic that distinguishes a private not-for-profit organization from a business?
A. Contributions are from resource providers who expect nothing in return.
B. Financial statements are intended primarily for use by donors.
C. The organization’s revenues exceed expenses.
D. Absence of ownership interests.
113.Which of the following is not an example of a voluntary health and welfare organization?
A. Meals on Wheels.
B. Big Brothers/Big Sisters.
C. Performing arts organizations.
D. Girl and Boy Scouts.
114.Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?
A) Time restrictions placed on the permanently restricted net assets have been
B). Purpose restriction placed on the permanently restricted net assets have
C). Either of the above criteria (A and B) have been met.
D). Permanently restricted net assets would not be reclassified to temporarily
115.FASB statement 116 requires contributions to be recorded as revenue when
A) The contribution is promised.
B) The contributed asset is actually received.
C) The contribution is likely to be received.
D) The contribution is probable and measurable.
116.Which of the following statements is false with respect to private not-for-profit organizations?
A) Exchange transactions should be recorded on the accrual basis of accounting where the revenues are recognized when earned.
B) An intention to give should be recorded as revenue when the intention is communicated to the not-for-profit.
C) In certain situations contributed services should be recognized as revenue.
D) FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.
117.Donors to private not-for-profit entities are primarily concerned with which of the following performance measures?
A) Program Expense Ratio.
B) Return on Investment.
C) Change in Net Assets.
D) Ending Unrestricted Net Assets.