CPA FAR - Not-for-Profit Accounting & Reporting with correct answers 100%

CPA FAR - Not-for-Profit Accounting & Reporting with correct answers 100% List the four broad categories of not-for-profit organizations. - Correct Answers 1. Hospitals and other health care entities; 2. Colleges and Universities; 3. Voluntary Health and Welfare Organizations; 4. Other not-for-profit organizations. What authoritative body has jurisdiction over private not-for-profit organizations? - Correct Answers Financial Accounting Standards Board (FASB). What type of not-for-profits consist predominantly of publicly funded hospitals and universities, although museums, parks, and landmarks can fall into this category as well? - Correct Answers "Public" (governmental affiliated) not-for-profits. List the two broad classifications for expenditures within a not-for-profit organization - Correct Answers 1. Program Services; 2. Supporting Services. Describe the reporting requirement when expenses are paid out of temporarily restricted net assets. - Correct Answers "Net assets released from restrictions" is reported as a decrease in the revenue section of temporarily restricted net assets and as an increase in the revenue section of unrestricted net assets. List the three financial statements that are required for all private not-for-profit organizations. - Correct Answers 1. Statement of Financial Position; 2. Statement of Activity; 3. Statement of Cash Flows. List the three categories of a not-for-profit organization's Net Assets. - Correct Answers 1. Unrestricted; 2. Temporarily Restricted; 3. Permanently Restricted. List two types of temporary restrictions. - Correct Answers 1. Time restrictions; 2. Purpose restrictions. What financial statement is required for Voluntary Health and Welfare organizations only? - Correct Answers Statement of Functional Expenses. List the two sub-classifications of expenditures for supporting services within a not-for-profit organization. - Correct Answers 1. Management and General; 2. Fund Raising. What is the net asset category where expenses are recognized? - Correct Answers Unrestricted net assets. Define "endowments". - Correct Answers Contributions to the organization from third parties for which the principal (corpus) must "remain intact in perpetuity." When are contribution of services recognized? - Correct Answers Recognized if the services require special skills, the person providing the services possess those skills, and the services would have been purchased if not obtained by donation. List the three conditions that must be met in order for assets to be classified as a "collectible." - Correct Answers 1. Held for public exhibition, education, or research rather than financial gain; 2. Protected, kept unencumbered, cared for, and preserved; 3. Subject to a policy that requires proceeds from sales of collection items to be used to acquire other items for collections. When is an implied time restriction recognized? - Correct Answers An implied time restriction can be recognized on donated long-lived depreciable assets. Define "term endowments". - Correct Answers Gifts and bequests from third parties which are to be retained and invested for a period of time or until a specific event occurs, but after the criterion has been met, the full amount can be spent.