©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP Final Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
Not-for-Profit vs. For-Profit - Answer✔• NFP entities receive contributions from resource
providers that do not expect a benefit in return
• NFP entities do NOT operate to provide goods or services at a profit
• NFP entities do not have ownership interests
Not-for-Profit vs. For-Profit: Other Differences - Answer✔• Businesses focus on maximizing
stock price.
• Businesses can change the price of goods and services to increase revenue.
• Revenue for NFPs is separate from the goods and services. Donors don't receive the benefits.
• Businesses know their customers and owners.
• More difficult for NFPs - are donors the customers or owners? Or is society or its founders?
• Cash Flow Patterns are different.
• NFPs see large inflows of donations between Thanksgiving and Christmas and must operate
on this throughout the following year.
NON Governmental NFPs follow - Answer✔FASB
NON Governmental NFPs - Answer✔Mostly tax exempt: private universities, healthcare,
religious, literary, service organizations
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, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NON Governmental NFP examples - Answer✔Harvard, UNA Foundation
Governmental NFPs follow - Answer✔GASB
Governmental NFPs: - Answer✔• General purposes: states and cities
• Special purposes: public universities and hospitals
Governmental NFPs example - Answer✔University of North Alabama
Four categories of non-governmental NFPs: - Answer✔1. Hospitals and other healthcare
entities
2. Colleges, universities and other educational organizations
3. Voluntary health and welfare organizations (VHWOs)
4. Other nonprofit organizations (ONPOs)
Mission - Answer✔communicates the NFP's purpose; why the organization exists and what the
NFP is striving to accomplish
Examples of mission - Answer✔seeking to put God's love into action, Habitat for Humanity
brings people together to build homes, communities, and hope; to honor and empower
wounded warriors; to advance change in America by ensuring equitable access to nutritious
food for all in partnership with food banks, policymakers, supporters, and the communities we
serve
Vision - Answer✔mental image of what successful attainment of the mission would look like;
how the world would be different if the organization's mission is accomplished
UNA, NYC, and Bay Area Rapid Transit (BART), operated in San Francisco are governed by -
Answer✔GASB
2|P a g e
NFP Final Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
Not-for-Profit vs. For-Profit - Answer✔• NFP entities receive contributions from resource
providers that do not expect a benefit in return
• NFP entities do NOT operate to provide goods or services at a profit
• NFP entities do not have ownership interests
Not-for-Profit vs. For-Profit: Other Differences - Answer✔• Businesses focus on maximizing
stock price.
• Businesses can change the price of goods and services to increase revenue.
• Revenue for NFPs is separate from the goods and services. Donors don't receive the benefits.
• Businesses know their customers and owners.
• More difficult for NFPs - are donors the customers or owners? Or is society or its founders?
• Cash Flow Patterns are different.
• NFPs see large inflows of donations between Thanksgiving and Christmas and must operate
on this throughout the following year.
NON Governmental NFPs follow - Answer✔FASB
NON Governmental NFPs - Answer✔Mostly tax exempt: private universities, healthcare,
religious, literary, service organizations
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NON Governmental NFP examples - Answer✔Harvard, UNA Foundation
Governmental NFPs follow - Answer✔GASB
Governmental NFPs: - Answer✔• General purposes: states and cities
• Special purposes: public universities and hospitals
Governmental NFPs example - Answer✔University of North Alabama
Four categories of non-governmental NFPs: - Answer✔1. Hospitals and other healthcare
entities
2. Colleges, universities and other educational organizations
3. Voluntary health and welfare organizations (VHWOs)
4. Other nonprofit organizations (ONPOs)
Mission - Answer✔communicates the NFP's purpose; why the organization exists and what the
NFP is striving to accomplish
Examples of mission - Answer✔seeking to put God's love into action, Habitat for Humanity
brings people together to build homes, communities, and hope; to honor and empower
wounded warriors; to advance change in America by ensuring equitable access to nutritious
food for all in partnership with food banks, policymakers, supporters, and the communities we
serve
Vision - Answer✔mental image of what successful attainment of the mission would look like;
how the world would be different if the organization's mission is accomplished
UNA, NYC, and Bay Area Rapid Transit (BART), operated in San Francisco are governed by -
Answer✔GASB
2|P a g e
