Not For Profit with correct answers 100%

Not For Profit with correct answers 100% Guidance included in FASB ASC 958, Financial Statements of Not-for-Profit Organizations, focuses on: A. Basic information for the organization as a whole. B. Standardization of funds nomenclature. C. Inherent differences of not-for-profit organizations that impact reporting presentations. D. Distinctions between current fund and non-current fund presentations. - Correct Answers Choice "A" is correct. Not-for-profit reporting guidance included in FASB ASC 958 primarily focuses on basic information for the organization as a whole. The standards establish guidance for generalpurpose external financial statements provided by a not-for-profit organization. What is the appropriate characterization of the net assets of a nongovernmental not-for-profit organization? A. Residual interest. B. Ownership interest. C. Donor's interest. D. Equity interest. - Correct Answers Choice "A" is correct. Net assets of a nongovernmental not-for-profit organization are most appropriately characterized as the residual interest of the not-for-profit entity. The ownership interests of not-for-profit organizations are unlike business enterprises. Resources do not belong to a defined class of owners, only the not-for-profit entity itself and the mission for which it was formed. The net assets represent the difference between the not-for-profit organization's assets and liabilities. Revenue Recognition in Health Care Organizations - Correct Answers 1. Patient Service Revenue 2. Other Operating Revenue(Includes Donated Supplies) 3. Nonoperating revenue(Includes Donated Services) On a nongovernmental, not-for-profit entity's statements of activities, which of the following amounts should not be netted together under any circumstances? A. Revenues and expenditures from the sale of used equipment. B. Revenues and expenditures from an annual fundraising event representing a major source of revenue. C. Investment income, custodial fees, and other advisory expenditures. D. Gains and losses from exchange rates or other foreign currency translations. - Correct Answers Choice "B" is correct. Special events that represent ongoing and major activities of the not-for-profit organization, such as an annual fundraising campaign, should fully display gross fundraising revenues and fundraising expenses. While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately. Annual fundraising events such as a gala, dinner, or auction that represent a major source of support for the not-for-profit organization are displayed showing gross revenues and expenses for the event. Normal ongoing appeals soliciting funding would recognize contribution revenue net of the cost of any related premiums. A nongovernmental not-for-profit animal shelter receives contributed services from the following individuals valued at their normal billing rate: Veterinarian provides volunteer animal care $8,000 Board member (a CPA) volunteers to prepare books for audit 4,500 Registered nurse volunteers as an extra receptionist 3,000 Teacher provides volunteer dog walking 2,000 What amount should the shelter record as contribution revenue? A. $8,000 B. $11,000 C. $12,500 D. $14,500 - Correct Answers Choice "C" is correct. Donated services are recorded at fair value if they create or enhance a nonfinancial asset or the required specialized skills the provider possesses and would otherwise have been purchased by the organization receiving the services. The services provided by the veterinarian and the board member represent specialized skills that would have required the shelter to purchase the services in the absence of the volunteers. The nurse volunteering as an extra receptionist and volunteer dog walking do not require specialized skills and may not have been otherwise needed so they are not recorded as revenue. Whitestone, a nongovernmental not-for-profit organization, received a contribution in December, Year 1. The donor restricted use of the contribution until March, Year 2. How should Whitestone record the contribution? A. Footnote the contribution in Year 1 and record as income when it becomes available in Year 2. B. No entry required in Year 1 and record as income in Year 2 when it becomes available. C. Report as income in Year 1. D. Report as deferred income in Year 1. - Correct Answers Choice "C" is correct. The contribution will be recorded as revenue in Year 1, and it will be classified as contributions with donor restrictions and an increase in net assets with donor restrictions until the time period for the restriction has passed. In the balance sheet of a not-for-profit hospital, marketable equity securities should be reported at: A. Fair value with gains and losses reported in the statement of activities. B. Fair value with gains and losses reported as a component of net assets. C. The lower of aggregate cost or market in separate portfolios for current and non-current assets. D. Cost, with no valuation for declines in market value, and in separate portfolios for assets without donor restrictions and assets with donor restrictions. - Correct Answers Choice "A" is correct. Marketable equity securities with readily determinable fair values and all investments in debt securities are measured at fair value in the statement of financial position. Gains and losses on investments are reported in the statement of activities as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulations or law. What are the required disclosures for not for profits? - Correct Answers Statement of Financial Position Statement of Activity Statement of Cash Flows Functional Expense Disclosure Types of Donor Restrictions - Correct Answers Purpose Time Acquisition of Plant Donor Restrictions in Perpetuity How are conditional promises recorded? - Correct Answers Not recorded, and conditional gifts received in advance of satisfying conditions are recorded as liabilities Are contributions of services recorded as revenue? - Correct Answers SOME of the time In order to be recorded as revenue, the services must either enhance a physical asset or meet the following criteria -require Specialized skills -are Otherwise needed -are Measured Easily Are donated works of art recorded as revenue? - Correct Answers Not required to be recorded if all of the following are met: 1. The item is held for public viewing 2. The work of art is cared for by