©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP Accounting Final Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Public non-profit standard setting body - Answer✔GASB
Private non-profit standard setting body - Answer✔FASB
FASB statement 117 - Answer✔written to bring consistency and comparability between the
financial reports of Private Colleges, Hospitals, Voluntary Health and Welfare Organizations
(VHWO), and Other Not-for-Profits
Voluntary health and wellness organizations - Answer✔promote general health and wellbeing
of public; operate mostly from grants and gifts; ex: United Way, American Cancer Society, Girl
Scouts, YMCA
Other Not-for-Profits - Answer✔benefit group of individuals; operate mostly from member
fees; ex: Fraternal Order of Police, Lions Libraries, Museums
NFP accounting basics - Answer✔accrual accounting (depreciation, expenses); funds only used
internally
Required NFP financial statements - Answer✔statement of financial position, statement of
activities, statement of cash flows
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, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
expense categories - Answer✔functional and natural; can be presented on the face of the
Statement of Activities, in the notes to the financial statements, or through a separate schedule
such as the Statement of Functional Expenses
change in net assets - Answer✔excess of revenues over expenses; not a measure of
organizational effectiveness
supporting services expenses - Answer✔management & general, fundraising, membership
development
cash flow categories - Answer✔operating, investing, financing
operating cash flows - Answer✔Interest expense, interest revenue, and gains and losses are
classified as operating
investing cash flows - Answer✔Purchases or sales of fixed assets as well as purchases or sales of
long-term investments
financing cash flows - Answer✔Issuance of debt; repayments of principal of debt; restricted
contributions or restricted investment proceeds that will be used for long-term purposes
(endowments, capital assets)
statement of functional expenses - Answer✔Matrix (spreadsheet) of expenses where the
columns are the functional classification (program or supporting activities) and the rows are the
natural classification (type of expense: salaries, supplies, depreciation, etc.); Provides additional
detail as to how the expenses were allocated to programs and supporting services
accounting for contributions - Answer✔does the resource provider receive commensurate
value in return for the resources provided? (exchange transaction) Are the resources
conditional? (disclosure) Are there donor-imposed restrictions on use? (contribution revenue
with donor restrictions)
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NFP Accounting Final Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Public non-profit standard setting body - Answer✔GASB
Private non-profit standard setting body - Answer✔FASB
FASB statement 117 - Answer✔written to bring consistency and comparability between the
financial reports of Private Colleges, Hospitals, Voluntary Health and Welfare Organizations
(VHWO), and Other Not-for-Profits
Voluntary health and wellness organizations - Answer✔promote general health and wellbeing
of public; operate mostly from grants and gifts; ex: United Way, American Cancer Society, Girl
Scouts, YMCA
Other Not-for-Profits - Answer✔benefit group of individuals; operate mostly from member
fees; ex: Fraternal Order of Police, Lions Libraries, Museums
NFP accounting basics - Answer✔accrual accounting (depreciation, expenses); funds only used
internally
Required NFP financial statements - Answer✔statement of financial position, statement of
activities, statement of cash flows
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
expense categories - Answer✔functional and natural; can be presented on the face of the
Statement of Activities, in the notes to the financial statements, or through a separate schedule
such as the Statement of Functional Expenses
change in net assets - Answer✔excess of revenues over expenses; not a measure of
organizational effectiveness
supporting services expenses - Answer✔management & general, fundraising, membership
development
cash flow categories - Answer✔operating, investing, financing
operating cash flows - Answer✔Interest expense, interest revenue, and gains and losses are
classified as operating
investing cash flows - Answer✔Purchases or sales of fixed assets as well as purchases or sales of
long-term investments
financing cash flows - Answer✔Issuance of debt; repayments of principal of debt; restricted
contributions or restricted investment proceeds that will be used for long-term purposes
(endowments, capital assets)
statement of functional expenses - Answer✔Matrix (spreadsheet) of expenses where the
columns are the functional classification (program or supporting activities) and the rows are the
natural classification (type of expense: salaries, supplies, depreciation, etc.); Provides additional
detail as to how the expenses were allocated to programs and supporting services
accounting for contributions - Answer✔does the resource provider receive commensurate
value in return for the resources provided? (exchange transaction) Are the resources
conditional? (disclosure) Are there donor-imposed restrictions on use? (contribution revenue
with donor restrictions)
2|P a g e
