98.Which of the following pledges of support would not be recognized in the year the pledge was made? A)An unconditional pledge restricted to a particular year in the future. B)A pledge with no...





98.Which of the following pledges of support would
not
be recognized in the year the pledge was made?



A)An unconditional pledge restricted to a particular year in the future.



B)A pledge with no restrictions, but conditional on receiving matching pledges.



C)An unconditional pledge restricted to a particular purpose.



D)None of the above – all would be recognized.



99.Under FASB Statement 117, reclassifications of net assets are
not
made:



A)For satisfaction of time restrictions.



B)For satisfaction of program restrictions.



C)For satisfaction of fixed asset acquisition.



D)For permanently restricted net assets.



100.Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?



A)Four categories are used: Operating, Capital Related Financing, Non-capital Related Financing, and Investing.



B)If the direct method is used, the not-for-profit must also present a reconciliation between total change in net assets and cash flows from operating activities.



C)Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories.



D)None of the above; all are true.



101.Which of the following is
nottrue of a Statement of Activities prepared for a private not-for-profit organization?



A)Expenses are shown only as decreases in unrestricted net assets.



B)Reclassifications for expiration of time restrictions are shown in the revenues and support section.



C)Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets.



D)Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.



102.The Statement of Functional Expenses:



A) Is no longer a required financial statement of any organization.



B)Is required of all private not-for-profit organizations.



C)Is required of voluntary health and welfare organizations.



D)Is required of all private colleges but not public colleges.



103.Which of the following is not a condition for recording donated services?



A)The individual providing the service provides an invoice detailing the hours contributed but waives the requirement for payment.



B)The service requires a specialized skill and the donor possesses those skills.



C) The service would have been paid for if not donated.



D)The service creates or enhances a non-financial asset.



104.A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:



A)Record the building as permanently restricted.



B)Record the building as temporarily restricted.



C)Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.



D)Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.



105.In 2015, a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug. An advance payment of $200,000 was received in 2015. The college was to receive $1,500 per individual test. In 2015, the college completed 100 tests. How much revenue should the college report for 2015?



A)$ 300,000



B)$ 200,000



C)$ 150,000



D)$ 100,000



106.A donor made an unconditional pledge in 2014 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2015 for unrestricted use in 2015. The organization should:



A)Record the pledge receivable and deferred revenue in 2014.



B)Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015.



C)Record the pledge as unrestricted revenue in 2014.



D)Record the pledge as temporarily restricted revenue in 2014 and reclassify it to unrestricted in 2015, but only in an amount equivalent to the amount that is spent in 2015.



107.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





May 15, 2022
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