Multiple Choice Questions
58.Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities?
A) FASB.
B) GASB.
C) AICPA.
D) SEC.
59.Private not-for-profits must follow all applicable ____ standards in recording transactions.
A) AICPA.
B) GASB.
C) FASB.
D) SEC.
60.Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.
A) GASB & Accrual.
B) GASB & Modified Accrual.
C) FASB & Accrual.
D) FASB & Modified Accrual.
61.Which of the following is
not
a distinguishing characteristic of a private not-for-profit organization according to FASB Statement No. 116?
A)Operating purposes other than to provide goods or services at a profit.
B)Absence of ownership interests like those of business enterprises.
C)Commonly financed through voluntary contributions.
D)Operate for the direct benefit of members.
62.What are the financial statements required for
all
nongovernmental, not-for-profit organizations?
A)Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses.
B)Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.
C)Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.
D)Statement of Financial Position, Statement of Activities, Statement of Cash Flows.
63.Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?
A)Assigned, Committed, and Unrestricted.
B)Net investment in capital assets, Restricted, and Unrestricted.
C)Partially Restricted, Temporarily Restricted, Unrestricted.
D)None of the above.
64.Which of the following isnot
true regarding accounting and financial reporting for nongovernmental, not-for-profit organizations?
A)Expenses are classified as unrestricted or temporarily restricted.
B)Expenses must be reported by function, either in the Statements of Activities or in the notes.
C)Net assets are classified according to donor-imposed restrictions.
D)All of the above are true.
65.Which of the following statements is
not
correct with respect to contributions to a private not-for-profit?
A)Contributions to a not-for-profit are recorded at fair market value at the date of receipt.
B)Contributions of assets other than cash to a not-for-profit are recorded at the donor’s basis.
C)Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition.
D)Revenues, including contributions are considered to be unrestricted unless donor-imposed restrictions apply.
66.Which of the following is
notcorrect with respect to the reporting of expenses for a private not-for-profit?
A)Expenses can be reported in the unrestricted net asset class or restricted net asset class, as appropriate.
B)Expenses are reported by function in the Statement of Activities or in the notes.
C)The FASB describes functions as either program or supporting.
D)Major program classifications should be shown in the Statement of Activities or in the notes.
67.With the exception of collections, fixed assets may be recorded by a private not-for-profit as:
A)Temporarily restricted
B)Unrestricted
C) Permanently restricted
D)Either A or B.