A nongovernmental, not-for-profit entity is subject to:

I. GASB

II. FASB

• a. I only
• b. II only
• c. a combination of I and II depending on the entity's purpose
• d. neither I or II

A voluntary health and welfare organization developed and printed informational materials which were intended to both educate the public about how its resources are used to help people in need and to also appeal to the public for much needed support. In this situation, the cost of the informational materials should be

• a. accounted for as fund-raising expense.
• b. allocated to expenses for program services.
• c. allocated between expenses for program services and fund-raising expense.
• d. accounted for as management and general expense.

The duties of a debtor in possession in a Chapter 11 bankruptcy case do not include

• A) filing a list of creditors and schedules of assets and liabilities with the bankruptcy court.
• B) operating the business during the reorganization period.
• C) filing a reorganization plan.
• D) issuing an order of relief.

Investment income for not-for-profit entities may include: I. interest from debt investments. II. dividends from equity investments. III. changes in the fair values of both debt and equity investments.

• a. I only
• b. I and II only
• c. I and III only
• d. I, II, and III

Gray College, a private not-for-profit institution, received a contribution of $100,000 for faculty research. The donation was received in 20X1 and $80,000 was spent in 20X1. As a result of these transactions, Gray College should report on its 20X1 statement of activities a:

• a. $100,000 increase in temporarily restricted net assets.
• b. $20,000 increase in temporarily restricted net assets.
• c. $80,000 increase in temporarily restricted net assets.
• d. $100,000 increase in unrestricted net assets.

A private university offers graduate assistantships to qualified students each year. In exchange for the waiver of tuition, graduate assistants are required to assist faculty members with research and other activities. Assume a graduate assistant received a $4,000 tuition waiver for the current academic year. Based on these facts, the university should record

• a. tuition revenues of $4,000 and expenditures of $4,000.
• b. tuition revenues of $0 and expenditures of $0.
• c. tuition revenues of $4,000 and expenditures of $0.
• d. tuition revenues of $4,000 and a reduction of tuition revenues of $4,000.

A not-for-profit organization received a donation temporarily restricted as to use. The donated amount was later spent in accordance with the restriction. In which category(ies) of net assets should the related revenues and expenses be recognized?

• a. Unrestricted: - ; Restricted: Revenue and Expenses
• b. Unrestricted: Revenues; Restricted: Expenses
• c. Unrestricted: Expenses; Restricted: Revenue
• d. Unrestricted: Revenues and Expenses; Restricted: -

In a not-for-profit, private university, the federal grant funds given directly to students for financial aid are an example of

• a. a bequest.
• b. an agency transaction.
• c. unrestricted revenue.
• d. a restricted contribution.

During the fiscal year ended June 30, 20X9, Global Charities, a voluntary health and welfare organization, received unrestricted cash contributions of $500,000 and temporarily restricted cash contributions of $300,000. All of the temporarily restricted contributions were restricted by the donors for equipment acquisitions. During the year ended June 30, 20X9, equipment costing $250,000 was acquired with the restricted contributions. As a result of these two contributions, Global Charities' statement of cash flows, prepared for the year ended June 30, 20X9, would report an increase in net cash provided by operating activities of:

• a. $500,000.
• b. $800,000.
• c. $750,000.
• d. $550,000.

Voluntary health and welfare organizations (VHWO) measure contributions at fair value unless

• a. fair value is less than the original cost of the item.
• b. the contributed item is not intended to be re-sold by the VHWO.
• c. fair value cannot be reasonably determined.
• d. the contributions are not in cash or cash equivalents.