78.Which of the following is
nottrue regarding the Statement of Cash Flows for nongovernmental, not-for-profit organizations?
A)Either the direct or indirect method may be used.
B)If a not-for-profit organization received a restricted cash contribution for long-term purposes, that cash contribution would be reported as a cash flow from financing activities.
C)Restricted contributions used for long-term purposes are reported as financing activities.
D)Four categories of cash flows are used.
79.Which of the following would be a contribution increasing permanently restricted net assets?
A)A contribution by a donor in the amount of $1,000,000, set aside by the governing board as funds not to be expended.
B)A contribution by a donor in the amount of $1,000,000 to be used to acquire fixed assets.
C) A contribution of $1,000,000 to fund an endowment.
D) None of the above.
80.A donor gave artwork to a nongovernmental, not-for-profit museum. The artwork qualified as a “collection,” under FASB rules. The not-for-profit could:
A)Record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets.
B)Not record the artwork, but provide information about the artwork in the notes.
C)Do either of the above, depending upon the policy of the not-for-profit.
D)Record the artwork as both a contribution and an expense.
81.Which of the following contributed services would probably
not
be recognized as contribution revenue?
A)An attorney donates her services to defend the Girl Scouts in a lawsuit.
B)A nurse donates her time to collect blood at an American Red Cross blood drive
C)An electrician donates his services to upgrade the electrical service at a mental health clinic.
D)State CPA society members hand out informational booklets at a shopping mall.
82.A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:
A)Record the $60,000 cash and credit a liability.
B)Record the $60,000 cash and credit temporarily restricted revenue.
C)Do either (a) or (b), depending upon the policy of the not-for-profit.
D)Not record the transaction, because the money is going directly to the intended recipient.
83.Which of the following organizations does
not
follow the AICPA's Not-for-Profit Guide?
A)Political parties.
B)Voluntary health and welfare organizations.
C)City libraries.
D)Private foundations.
84.In which of the following categories may
Investment Income
be reported by Not-for-Profit organizations:
I. Unrestricted net asset
II. Temporarily restricted net asset
III.Permanently restricted net asset
A)Only I.
B)Only I & II.
C)Only 1 & III.
D)I, II & III.
85.A skilled carpenter repaired the roof of the administrative building for a private not-for-profit free of charge. The not-for-profit would have had to pay $2,000 for this service if not donated. What entry should the not-for-profit make?
A)No entries are required for this event.
B)Supporting Service expense$2,000
Contribution revenue$2,000
C)Capital Expenditures$2,000
Contribution revenue$2,000
D)Building$2,000
Contribution revenue$2,000
86.Henry Highbrow promises to donate $25,000 to his church toward the purchase of a new piano if the church is able to raise matching funds of $25,000 from other contributors. At what point should the church record revenue?
A)When Henry makes his pledge, as long as collection is reasonably assured.
B)When the matching funds are raised.
C)When the piano is purchased.
D)When Henry pays the $25,000 to the church.
87.Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution?
A)At the time when the church was informed of her will.
B)At the time the church receives a written copy of the will.
C)At the date the probate court declares the will valid following her death.
D)At Lisa’s death.