Test Bank for NNOs

Special entities are not-for-profit organizations that are:

• government owned.

• privately owned.

• publicly owned.

• either government owned or privately owned.

The basic financial statements for all NFPs include a:

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

• Statement of activities and Statement of cash flows

• Balance sheet and Statement of activities

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

A good reason for NNOs to adopt fund accounting even though FASB standards do NOT require it is because:

• the capital assets are significant.

• the donated services are significant.

• the program services are involved with more than one type of revenue.

• restrictions are placed by donors in many cases.

Which one of the following statements is NOT required for NNOs?

• statement of financial position

• statement of cash flows

• statement of changes in net assets

• statement of activities

GASB Statement No. 35 allows public colleges and universities to:

• apply guidance designed for special-purpose governments.

• use FASB standards to permit consistent reporting.

• optionally follow FASB standards.

• none of these are correct.

An endowment fund is considered underwater if:

• the fair value of the fund at the reporting date is equal to either the original amount of the gift or the amount required to be maintained by the donor, or by law.

• the fair value of the fund at the reporting date is less than either the original amount of the gift or the amount required to be maintained by the donor, or by law.

• the fair value of the fund at the reporting date is more than either the original amount of the gift or the amount required to be maintained by the donor, or by law.

• the amount required to be maintained by the donor, or by law is less than the fair value of the fund at the reporting date

Revenues and expenses of hospitals are recorded in the accounts of the:

• Endowment Fund.

• General Fund.

• Plant Replacement Fund.

• Specific Purpose Fund.

Which basis of accounting should a voluntary health and welfare organization use?

• Cash basis for all funds

• Modified accrual basis for all funds

• Accrual basis for all funds

• Accrual basis for some funds and modified accrual basis for other funds

Generally accepted accounting standards require that on financial statements for NNOs,

• revenues are reported when received, and expenditures are reported when materials or services are received.

• revenues are reported when earned and realized or realizable, and expenditures are reported when materials or services are received.

• revenues are reported when received, and expenditures are reported when materials or services are ordered.

• revenues are reported when earned and realized or realizable, and expenditures are reported when materials or services are ordered.

Admissions, counseling and registration are considered to be:

• educational and general services.

• auxiliary enterprises.

• student services.

• institutional support.