Question

20.

Board designated funds should be accounted for as:

A. net assets with donor restrictions.

B. specific purpose funds.

C. net assets without donor restrictions.

D. none of these.

21. The basic financial statements for all NFPs include a:

A. Balance sheet, Statement of cash flows, and Footnotes to the financial statements

B. Statement of activities and Statement of cash flows

C. Balance sheet and Statement of activities

D. Statement of financial position, Statement of activities, Statement of cash flows, and Footnotes to the financial statements

22. A donor pledges $100,000 to the Shakespeare Foundation to be used only to support the summer Shakespeare Theater—an event that has been held every summer for 38 years. This is an example of a

A. Conditional Contribution.

B. Contributions with donor restrictions.

C. Contributions with no donor restrictions.

D. A decrease in net assets.

23. The purpose of the reporting of functional expenses is to:   

A. Report on the net income of each program and the related direct and indirect expenses.

B. Report on program expenses and supporting expenses.

C. Report on the natural expenses (object-of-expense), as well as program and support functions expenses.

  D. Report on the cash flows of each program and that of supporting the programs.

24. Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?   

A. Net assets with donor restrictions.

B. Permanently restricted net assets.

C. Endowment assets.

D. Net assets without donor restrictions.

25. The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?

A. Net assets with donor restrictions.

B. Net assets without donor restrictions.

C. Internal payable.

D. The resources would not be reported on the statement of financial position.

26. A donor contributes a check for $1,000 to the CUNY Fund, a NFP. The donor did not stipulate what the contribution could be used for. The donation would:

A. Be recorded as a pledge.

B. Increase net assets without donor restrictions.

C. Be recorded as exchange revenue.

D. Increase net assets with donor restrictions. 27. All not-for-profits are required to report functional expenses in either a separate statement or in disclosure notes. Functional expenses:

A. Report on the net income of each program and the related direct and indirect expenses.

B. Report on program expenses and supporting expenses.

C. Report on the natural expenses (object-of-expense), as well as program and support functions expenses.

D. Report on the cash flows of each program and that of supporting the programs.   

28. The guidance used comes from:

A. The GASB.

B. The FASB.

C. The FASAB.

D. None of the above.

29. For a notforby nongovernmental notforprofit organizations for financial reporting profit to exist, there has to be a(n):

A. Donative mission.

B. Inability to generate a profit.

C. Taxpaying ability.

D. Objective to serve the government.

30.

The expenses of a nongovernmental NFP:

A. Reduce net assets with donor restrictions. B. Include only program expenses.

C. Reduce net assets without donor restrictions.

D. None of the above.

Answer 1

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Board designated funds should be accounted for as:

C. net assets without donor restrictions.

The basic financial statements for all NFPs include a:

D. Statement of financial position, Statement of activities, Statement of cash flows, and Footnotes to the financial statements

A donor pledges $100,000 to the Shakespeare Foundation to be used only to support the summer Shakespeare Theater—an event that has been held every summer for 38 years. This is an example of a

B. Contributions with donor restrictions.

The purpose of the reporting of functional expenses is to:

C. Report on the natural expenses (object-of-expense), as well as program and support functions expenses.

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?

A. Net assets with donor restrictions.

The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?

B. Net assets without donor restrictions.

A donor contributes a check for $1,000 to the CUNY Fund, a NFP. The donor did not stipulate what the contribution could be used for. The donation would:

Increase net assets without donor restrictions.

All not-for-profits are required to report functional expenses in either a separate statement or in disclosure notes. Functional expenses:

C. Report on the natural expenses (object-of-expense), as well as program and support functions expenses.

The guidance used comes from:

A. The GASB.

For a not for by nongovernmental not for profit organizations for financial reporting profit to exist, there has to be a(n):

C. Taxpaying ability.

The expenses of a nongovernmental NFP:

B. Include only program expenses.