True/False Questions
1.The financial statements of private not-for-profits are intended primarily for those who have a residual claim to the net assets of the organization.
2.After the issuing of Statement 117, not-for-profit financial statements are relatively standardized across industries.
3. The GASB has the authority to establish accounting and financial reporting standards for both government-owned and private not-for-profit organizations.
4.Private not-for-profits use the modified accrual basis and do not record fixed assets or long-term debt.
5.Private not-for-profits use record encumbrances to maintain budgetary control.
6. Accounting practices of private sector not-for-profit organizations are influenced by two AICPA audit and accounting guides:
Not-for-Profit Organizations
and
Health Care Organizations.
7. The AICPA Not-for-Profit Guide applies only to nongovernmental not-for-profit organizations.
8. While many private not-for-profit organizations use funds for internal purposes, the financial statements do
not
report separate funds.
9. Examples of voluntary health and welfare organizations would include the Girl Scouts and the American Heart Association.
10.Country clubs and labor unions are
notincluded in the category “other not-for-profit” organizations because they provide benefit to their members only and not to the general public.
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