Which of the following is a characteristic of not-for-profit organizations?
A. They receive contributions from significant resource providers who do not expect a commensurate or
proportionate monetary return.
B. They operate for the purposes other than to make a profit.
C. There is an absence of ownership interest.
D. All of the above - Correct Answers D. All of the above
True or False: A NFP operates to fulfill a mission to better society whereas a FP operates to realize net
profits for the owners.
A. True
B. False - Correct Answers A. True
How many different categories of tax-exempt organizations are classified under Section 501(c) of the
Internal Revenue Code?
A. 8
B. 15
C. 29
D. 35 - Correct Answers C. 29
An Educational organization is classified under which 501(c) section of the Internal Revenue Code?
A. 501(c)(7)
B. 501(c)(10)
C. 501(c)(3)
D. 501(c)(6) - Correct Answers C. 501(c)(3)
Which of the following is not a person or organization who would use NFP Financial Statements?
A. Financial Institutions
, B. Oversight Agencies
C. A Corporation
D. Donors and Granting Agencies - Correct Answers C. A Corporation
Which of the following is NOT a basic NFP financial statement?
A. Statement of Financial Position
B. Statement of Activities
C. Statement of Functional Expenses
D. Statement of Funds Flow - Correct Answers D. Statement of Funds Flow
True or False: The accounting equation of a nonprofit is Assets = Liabilities + Net Assets
A. True
B. False - Correct Answers A. True
True or False: The Statement of Financial Position is the equivalent of a for profit income statement.
A. True
B. False - Correct Answers B. False
Donor restrictions can be made for:
A. Restricted for specific purpose
B. Restricted for passage of time
C. Restricted in perpetuity
D. All of the above - Correct Answers D. All of the above
A nonprofit's revenues and expenses are reported on its statement of _____.
A. Financial Position
B. Activities
C. Cash Flow
D. Expenses - Correct Answers B. Activities
A. They receive contributions from significant resource providers who do not expect a commensurate or
proportionate monetary return.
B. They operate for the purposes other than to make a profit.
C. There is an absence of ownership interest.
D. All of the above - Correct Answers D. All of the above
True or False: A NFP operates to fulfill a mission to better society whereas a FP operates to realize net
profits for the owners.
A. True
B. False - Correct Answers A. True
How many different categories of tax-exempt organizations are classified under Section 501(c) of the
Internal Revenue Code?
A. 8
B. 15
C. 29
D. 35 - Correct Answers C. 29
An Educational organization is classified under which 501(c) section of the Internal Revenue Code?
A. 501(c)(7)
B. 501(c)(10)
C. 501(c)(3)
D. 501(c)(6) - Correct Answers C. 501(c)(3)
Which of the following is not a person or organization who would use NFP Financial Statements?
A. Financial Institutions
, B. Oversight Agencies
C. A Corporation
D. Donors and Granting Agencies - Correct Answers C. A Corporation
Which of the following is NOT a basic NFP financial statement?
A. Statement of Financial Position
B. Statement of Activities
C. Statement of Functional Expenses
D. Statement of Funds Flow - Correct Answers D. Statement of Funds Flow
True or False: The accounting equation of a nonprofit is Assets = Liabilities + Net Assets
A. True
B. False - Correct Answers A. True
True or False: The Statement of Financial Position is the equivalent of a for profit income statement.
A. True
B. False - Correct Answers B. False
Donor restrictions can be made for:
A. Restricted for specific purpose
B. Restricted for passage of time
C. Restricted in perpetuity
D. All of the above - Correct Answers D. All of the above
A nonprofit's revenues and expenses are reported on its statement of _____.
A. Financial Position
B. Activities
C. Cash Flow
D. Expenses - Correct Answers B. Activities
