Which organization has primary standard setting authority over private not-for-profit organizations?
A. Financial Accounting Standards Board.
B. Governmental Accounting Standards Board.
C. National Council of Nonprofit Organizations.
D. American Institute of Certified Public Accountants. - Correct Answers A. Financial Accounting
Standards Board.
What are the financial statements required for voluntary health and welfare organizations?
A. Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of
Functional Expenses.
B. Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.
C. Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.
D. Statement of Financial Position, Statement of Activities, Statement of Cash Flows. - Correct Answers
A. Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of
Functional Expenses.
Which of the following are the net asset classes for private not-for-profit organizations?
A. Assigned, Committed, and Unrestricted.
B. Net investment in capital assets, Restricted, and Unrestricted.
C. Permanently Restricted, Temporarily Restricted, Unrestricted.
D. Paid in capital, Retained earnings. - Correct Answers C. Permanently Restricted, Temporarily
Restricted, Unrestricted.
Which of the following is/are correct with respect to the reporting of expenses for a private not-for-
profit?
, A. Expenses can be reported in the unrestricted net asset class or temporarily restricted net asset class,
as appropriate.
B. Expenses are reported by function within two broad categories (program or supporting) in the
Statement of Activities or in the notes.
C. Both of the above.
D. Neither of the above. - Correct Answers B. Expenses are reported by function within two broad
categories (program or supporting) in the Statement of Activities or in the notes.
What financial ratio is most commonly used to evaluate charitable organizations?
A. Current assets / current liabilities.
B. Program expenses / total expenses.
C. Increase in net assets / total assets.
D. Total expenses / total revenues. - Correct Answers B. Program expenses / total expenses.
Which of the following statements is correct with respect to contributions to a private not-for-profit?
A. Contributions, including unconditional pledges, to a not-for-profit are recorded at fair market value at
the date of receipt.
B. Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition.
C. Both of the above.
D. Neither of the above. - Correct Answers C. Both of the above.
Contributed services are recognized as revenue by a private not-for-profit when the service:
A. Creates or enhances a non-financial asset (i.e. a building).
B. Requires specialized skills, is provided by someone possessing those skills, and typically would be
purchased if not provided by donation.
C. Either of the above.
D. Neither of the above. - Correct Answers C. Either of the above.
A. Financial Accounting Standards Board.
B. Governmental Accounting Standards Board.
C. National Council of Nonprofit Organizations.
D. American Institute of Certified Public Accountants. - Correct Answers A. Financial Accounting
Standards Board.
What are the financial statements required for voluntary health and welfare organizations?
A. Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of
Functional Expenses.
B. Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.
C. Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.
D. Statement of Financial Position, Statement of Activities, Statement of Cash Flows. - Correct Answers
A. Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of
Functional Expenses.
Which of the following are the net asset classes for private not-for-profit organizations?
A. Assigned, Committed, and Unrestricted.
B. Net investment in capital assets, Restricted, and Unrestricted.
C. Permanently Restricted, Temporarily Restricted, Unrestricted.
D. Paid in capital, Retained earnings. - Correct Answers C. Permanently Restricted, Temporarily
Restricted, Unrestricted.
Which of the following is/are correct with respect to the reporting of expenses for a private not-for-
profit?
, A. Expenses can be reported in the unrestricted net asset class or temporarily restricted net asset class,
as appropriate.
B. Expenses are reported by function within two broad categories (program or supporting) in the
Statement of Activities or in the notes.
C. Both of the above.
D. Neither of the above. - Correct Answers B. Expenses are reported by function within two broad
categories (program or supporting) in the Statement of Activities or in the notes.
What financial ratio is most commonly used to evaluate charitable organizations?
A. Current assets / current liabilities.
B. Program expenses / total expenses.
C. Increase in net assets / total assets.
D. Total expenses / total revenues. - Correct Answers B. Program expenses / total expenses.
Which of the following statements is correct with respect to contributions to a private not-for-profit?
A. Contributions, including unconditional pledges, to a not-for-profit are recorded at fair market value at
the date of receipt.
B. Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition.
C. Both of the above.
D. Neither of the above. - Correct Answers C. Both of the above.
Contributed services are recognized as revenue by a private not-for-profit when the service:
A. Creates or enhances a non-financial asset (i.e. a building).
B. Requires specialized skills, is provided by someone possessing those skills, and typically would be
purchased if not provided by donation.
C. Either of the above.
D. Neither of the above. - Correct Answers C. Either of the above.
