Which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization?
Land was donated to the Friends of the Forest Society for conversion into a nature trail.
The original courthouse was donated to the Historical Preservation Society that is converting the courthouse to a museum.
An art collector donated a famous oil painting to a local nongovernmental art museum for display in its exhibit hall.
A valuable coin collection was donated to the Youth for Conservation organization, which the organization plans to sell at current market prices.
Which of the following organizations would be covered by the AICPA Audit and Accounting Guide Not-for-Profit Organizations?
Political parties.
Employee benefit and pension plans.
Proprietary hospitals.
Farm cooperatives.
Accounting standards for NPOs require
Accrual accounting.
Modified accrual accounting.
Fund accounting.
Capitalization of collections.
Securities donated to an NPO should be recorded at the
Donor's recorded amount.
Fair market value at the date of the gift, or the donor's recorded amount, whichever is lower.
Fair market value at the date of the gift, or the donor's recorded amount, whichever is higher.
Fair market value at the date of the gift.
Which of the following would be considered "contribution revenue or support" of an NPO?
Gain on disposal of capital assets.
Contributions received from a fund-raising campaign.
Rent earned from rental of surplus office space.
Investment earnings.
An NPO incurred $10,000 in management and general expenses in the current fiscal year. In the organization's statement of activities prepared in conformity with FASB standards, the $10,000 would be reported as
A deduction from program revenue.
A reduction of permanently restricted assets.
Program services expenses.
Supporting services expenses.
Which of the following statements is correct regarding reporting of special events and related direct costs under current FASB standards?
Special events and related direct costs must be reported separately at their gross amounts if they relate to the ongoing major operations of an NPO.
Special events must be reported net of related direct costs, even if they are of a peripheral or incidental nature.
All special events may be reported net of related direct costs.
Expenses of promoting and conducting special events should be netted directly against special events revenue.
A local philanthropist pledged to make a donation of $100,000 to an NPO to be paid in five equal installments of $20,000 beginning in the next fiscal year. Under FASB standards the pledge would be recognized as
Support of $20,000 in each of the following five years.
Support of $20,000 in the year the pledge was made and $80,000 as deferred support.
Deferred support of $100,000 in the year the pledge was made.
Support of $100,000 in the year the pledge was made, discounted at an appropriate rate for future receipts.
Temporarily restricted net assets are released from restrictions
At the end of each fiscal year.
As assets are spent for the purposes intended by the donor.
When funds are returned to the donor.
When they are converted to permanently restricted net assets.
A good reason for an NPO to adopt fund accounting even though FASB standards do not require it is that
The NPO provides more than one type of program service.
The NPO's capital assets are significant.
Restrictions have been placed on the use of certain of its assets by donors.
The NPO's donated services are significant.
