GOV ACCTG Exam 3 HW Questions with
verified answers graded A+
Which organization has primary standard setting authority over private not-for-
profit organizations?
American Institute of Certified Public Accountants.
Governmental Accounting Standards Board.
National Council of Nonprofit Organizations.
Financial Accounting Standards Board. - correct answer ✔✔Financial Accounting
Standards Board
Which financial statements are required for private not-for-profit organizations?
Statement of Financial Position, Statement of Activities, Statement of Cash Flows,
Statement of Functional Expenses
Statement of Financial Position, Statement of Activities, Statement of Functional
Expenses.
Statement of Financial Position, Statement of Functional Expense, Statement of
Cash Flows.
,Statement of Financial Position, Statement of Net Assets, Statement of Functional
Expenses. - correct answer ✔✔Statement of Financial Position, Statement of
Activities, Statement of Cash Flows, Statement of Functional Expenses
A donor made an unconditional pledge in 2019 of $8,000 to a private not-for-
profit organization with the intent to pay the cash in June 2020. The organization
should:
Record the pledge as revenue without donor restrictions in 2019.
Record the pledge as revenue with donor restrictions in 2019 and reclassify it to
without donor restrictions in 2020, but only in an amount equivalent to the
amount that is spent in 2020.
Record the pledge as revenue with donor restrictions in 2019 and reclassify it to
without donor restrictions in 2020.
Record the pledge as deferred revenue in 2019. - correct answer ✔✔Record the
pledge as revenue with donor restrictions in 2019 and reclassify it to without
donor restrictions in 2020.
The institution's governing board decided to create an endowment from
unrestricted funds, this is called a(n) ________ and the funds are classified as
____________.
Endowment, net assets with donor restrictions
Quasi-endowment, net assets without donor restrictions
, Quasi-endowment, net assets with donor restrictions
Quasi-endowment, net assets with donor restrictions - correct answer ✔✔Quasi-
endowment, net assets without donor restrictions
A donor gave $50,000 to a nongovernmental, not-for-profit charity with
instructions that the funds be transferred to an individual who lost his home in a
fire. The not-for-profit would:
A. Record the $50,000 cash and credit a liability.
B. Record the $50,000 cash and credit temporarily restricted revenue.
C. Do either (a) or (b), depending upon the policy of the not-for-profit.
D. Not record the transaction, because the money is going directly to the intended
recipient. - correct answer ✔✔A. Record the $50,000 cash and credit a liability.
A skilled carpenter installed a roof on a new administrative building for a private
not-for-profit free of charge. The not-for-profit would have had to pay $18,000 for
this service if not donated. What entry should the not-for-profit make? - correct
answer ✔✔Debit Building 18,000
Credit Contribution Revenue 18,000
A benefactor promises to donate $15,000 to his church toward the purchase of a
new piano if the church is able to raise matching funds of $15,000 from other
contributors. At what point should the church record revenue?
When the benefactor makes his pledge, as long as collection is reasonably
assured.
verified answers graded A+
Which organization has primary standard setting authority over private not-for-
profit organizations?
American Institute of Certified Public Accountants.
Governmental Accounting Standards Board.
National Council of Nonprofit Organizations.
Financial Accounting Standards Board. - correct answer ✔✔Financial Accounting
Standards Board
Which financial statements are required for private not-for-profit organizations?
Statement of Financial Position, Statement of Activities, Statement of Cash Flows,
Statement of Functional Expenses
Statement of Financial Position, Statement of Activities, Statement of Functional
Expenses.
Statement of Financial Position, Statement of Functional Expense, Statement of
Cash Flows.
,Statement of Financial Position, Statement of Net Assets, Statement of Functional
Expenses. - correct answer ✔✔Statement of Financial Position, Statement of
Activities, Statement of Cash Flows, Statement of Functional Expenses
A donor made an unconditional pledge in 2019 of $8,000 to a private not-for-
profit organization with the intent to pay the cash in June 2020. The organization
should:
Record the pledge as revenue without donor restrictions in 2019.
Record the pledge as revenue with donor restrictions in 2019 and reclassify it to
without donor restrictions in 2020, but only in an amount equivalent to the
amount that is spent in 2020.
Record the pledge as revenue with donor restrictions in 2019 and reclassify it to
without donor restrictions in 2020.
Record the pledge as deferred revenue in 2019. - correct answer ✔✔Record the
pledge as revenue with donor restrictions in 2019 and reclassify it to without
donor restrictions in 2020.
The institution's governing board decided to create an endowment from
unrestricted funds, this is called a(n) ________ and the funds are classified as
____________.
Endowment, net assets with donor restrictions
Quasi-endowment, net assets without donor restrictions
, Quasi-endowment, net assets with donor restrictions
Quasi-endowment, net assets with donor restrictions - correct answer ✔✔Quasi-
endowment, net assets without donor restrictions
A donor gave $50,000 to a nongovernmental, not-for-profit charity with
instructions that the funds be transferred to an individual who lost his home in a
fire. The not-for-profit would:
A. Record the $50,000 cash and credit a liability.
B. Record the $50,000 cash and credit temporarily restricted revenue.
C. Do either (a) or (b), depending upon the policy of the not-for-profit.
D. Not record the transaction, because the money is going directly to the intended
recipient. - correct answer ✔✔A. Record the $50,000 cash and credit a liability.
A skilled carpenter installed a roof on a new administrative building for a private
not-for-profit free of charge. The not-for-profit would have had to pay $18,000 for
this service if not donated. What entry should the not-for-profit make? - correct
answer ✔✔Debit Building 18,000
Credit Contribution Revenue 18,000
A benefactor promises to donate $15,000 to his church toward the purchase of a
new piano if the church is able to raise matching funds of $15,000 from other
contributors. At what point should the church record revenue?
When the benefactor makes his pledge, as long as collection is reasonably
assured.
