Short Answer Questions
137.According to FASB Statement No. 116, Appendix D, how are not-for-profit organizations distinguished from a business?
140.Answer the following questions regarding financial reporting by private not-for-profit organizations.
(1)What are the financial statements required for all private not-for-profit organizations?
(2)What organizations are required to present a Statement of Functional Expenses?
(3)What are the three classes of Net Assets?
141.When might it be appropriate for a not-for-profit organization to report a surplus (increase in net assets)?
142.What are the criteria established by Statement of Position 98-02 for allocation of costs that involve fund raising?
143.FASB Statement 136
Transfer of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds Contributions for Others
provides guidance on how intermediary recipient organizations should record receipt of resources held for others. Briefly describe the issue and how such transfers should be recorded.
144.Distinguish between an exchange transaction and a contribution. How is the accounting different for these two events?