CPA FAR - Not-for-Profit Accounting & Reporting Exam Questions and Answers 100% Pass

CPA FAR - Not-for-Profit Accounting & Reporting Exam Questions and Answers 100% Pass List the four broad categories of not-for-profit organizations. - 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? - 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 2 Katelyn Whitman, All Rights Reserved © 2025 fall into this category as well? - "Public" (governmental affiliated) not- for-profits. List the two broad classifications for expenditures within a not-for-profit organization - 1. Program Services; 2. Supporting Services. Describe the reporting requirement when expenses are paid out of temporarily restricted net assets. - "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. - 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. - 1. Unrestricted; 3 Katelyn Whitman, All Rights Reserved © 2025 2. Temporarily Restricted; 3. Permanently Restricted. List two types of temporary restrictions. - 1. Time restrictions; 2. Purpose restrictions. What financial statement is required for Voluntary Health and Welfare organizations only? - Statement of Functional Expenses. List the two sub-classifications of expen