Not For Profit Accounting Paper 8

1

Kerry College, a private not-for-profit college, received $25,000 from Ms. Mary Smith on April 30, 2012. Ms. Smith stipulated that her contribution be used to support faculty research during the fiscal year beginning on July 1, 2012. On July 15, 2012, administrators of Kerry awarded research grants totaling $25,000 to several faculty in accordance with the wishes of Ms. Smith. For the year ended June 30, 2012, Kerry College should report the $25,000 contribution as






2

Good Hope, a private not-for-profit voluntary health and welfare organization, received a cash donation of $500,000 from Mr. Charles Peobody on November 15, 2012. Mr. Peobody directed that his donation be used to acquire equipment for the organization. Good Hope used the donation to acquire equipment costing $500,000 in January of 2013. For the year ended December 31, 2012, Good Hope should report the $500,000 contribution on its






3

On the statement of activities for a private not-for-profit performing arts center, expenses should be deducted from I. Unrestricted revenues. II. Temporarily restricted revenues. III. Permanently restricted revenues.






4

Albert University, a private not-for-profit university, had the following cash inflows during the year ended June 30, 2012: I. $500,000 from students for tuition. II. $300,000 from a donor who stipulated that the money be invested indefinitely. III. $100,000 from a donor who stipulated that the money be spent in accordance with the wishes of Albert’s governing board. On Albert University’s statement of cash flows for the year ended June 30, 2012, what amount of these cash flows should be reported as operating activities?






5

Gamma Pi, a private nonprofit fraternal organization, should prepare a statement of financial position and which of the following financial statements? I. Statement of activities. II. Statement of changes in fund balances. III. Statement of cash flows.






6

Save the Planet, a private nonprofit research organization, received a $500,000 contribution from Ms. Susan Clark. Ms. Clark stipulated that her donation be used to purchase new computer equipment for Save the Planet’s research staff. The contribution was received in August of 2012, and the computers were acquired in January of 2013. For the year ended December 31, 2012, the $500,000 contribution should be reported by Save the Planet on its






7

United Ways, a private not-for-profit voluntary health and welfare organization, received a contribution of $10,000 from a donor in 2011. The donor did not specify any use restrictions on the contribution; however, the donor specified that the donation should not be used until 2012. The governing board of United Ways spent the contribution in 2012 for fund-raising expenses. For the year ended December 31, 2011, United Ways should report the contribution on its






8

The statement of cash flows for a private not-for-profit hospital should report cash flows according to which of the following classifications? I. Operating activities. II. Investing activities. III. Financing activities.






9

Pharm, a nongovernmental not-for-profit organization, is preparing its year-end financial statements. Which of the following statements is required?






10

Stanton College, a not-for-profit organization, received a building with no donor stipulations as to its use. Stanton does not have an accounting policy implying a time restriction on donated fixed assets. What type of net assets should be increased when the building is received? I. Unrestricted. II. Temporarily restricted. III. Permanently restricted.






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