Chapter 14 Governmental & NFP Questions
with Complete Solutions
Expenses that relate to either the program or mission of the organization or the management and
general and fund-raising expenses required to support the programs are called ______.
functional expenses
When the donor states that assets are to be held in perpetuity but allows the organization to spend
any income earned from investing those assets, they are ______ net assets. permanently
restricted
The statement of activities ______. presents changes in net assets without donor
restrictions, net assets with donor restrictions, and total net assets for the reporting period
Identify the correct statement regarding the notes to financial statements for NFPs.
Disclosures include principles applicable to for-profit entities unless there is a specific
exemption for not-for-profit organizations.
The FASB ______ to report expenses by their functional and natural classification.
requires all NFP organizations
, Functional expenses that relate to either the program or mission of the organization are called
______. program expenses
Permanently restricted net assets are also called ______ and are _______. endowments;
nonexpendable
Examples of revenues arising from exchange transactions include which of the following?
program fees
sales of goods and services
membership dues
Examples of required disclosures for NFPs include those relating to which of the following?
financial instruments
commitments
contingencies
A donor-imposed condition exists if which of the following are present? a right of return
or release
with Complete Solutions
Expenses that relate to either the program or mission of the organization or the management and
general and fund-raising expenses required to support the programs are called ______.
functional expenses
When the donor states that assets are to be held in perpetuity but allows the organization to spend
any income earned from investing those assets, they are ______ net assets. permanently
restricted
The statement of activities ______. presents changes in net assets without donor
restrictions, net assets with donor restrictions, and total net assets for the reporting period
Identify the correct statement regarding the notes to financial statements for NFPs.
Disclosures include principles applicable to for-profit entities unless there is a specific
exemption for not-for-profit organizations.
The FASB ______ to report expenses by their functional and natural classification.
requires all NFP organizations
, Functional expenses that relate to either the program or mission of the organization are called
______. program expenses
Permanently restricted net assets are also called ______ and are _______. endowments;
nonexpendable
Examples of revenues arising from exchange transactions include which of the following?
program fees
sales of goods and services
membership dues
Examples of required disclosures for NFPs include those relating to which of the following?
financial instruments
commitments
contingencies
A donor-imposed condition exists if which of the following are present? a right of return
or release
