Select the best answer for each of the following multiple-choice items. Items (1) through (3) are based

Question:

Select the best answer for each of the following multiple-choice items. Items (1) through (3) are based on the following:
The Fox Point Humane Society, a VHWO caring for lost animals, had the following financial inflows and outflows for the year ended December 31, 2018:
Inflows:
Cash received from federated campaign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $650,000
Cash received that is designated for 2019 operations . . . . . . . . . . . . . . . . . . . . . . 15,000
Contributions pledged for 2018, not yet received. . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Contributions pledged for 2019, not yet received. . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Sales of pet supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Pet adoption fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Outflows:
Kennel operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $375,000
Pet health care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Advertising pets for adoption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Fund raising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Administrative and general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
1. In the humane society's statement of activities for the year ended December 31, 2018, what amount should be reported under the classification of program services expense?
a. $625,000
b. $705,000
c. $575,000
d. $825,000
2. In the humane society's statement of activities for the year ended December 31, 2018, what amount should be reported under the classification of public support-unrestricted?
a. $690,000
b. $750,000
c. $650,000
d. $820,000
3. In the humane society's as of December 31, 2018, what amount should be reported under the classification of public support-temporarily restricted?
a. $15,000
b. $30,000
c. $0
d. $45,000
4. Apex, Inc., donated a computer to Bird Shelter, a voluntary welfare organization. The computer cost Apex $40,000. On the date of donation, it had a book value of $25,000 and a fair value of $20,000. Bird Shelter's depreciation expense should be based on
a. $40,000.
b. $25,000.
c. $20,000.
d. $15,000.
5. Safe Haven, a voluntary welfare organization funded by contributions from the general public, received unrestricted pledges of $400,000 during 2018. It was estimated that 12% of these pledges would be uncollectible. By the end of 2018, $300,000 of the pledges had been collected, and it was expected that $40,000 more would be collected in 2019, with the balance of $60,000 to be written off as uncollectible. Donors did not specify any periods during which the donations were to be used. What amount should Safe Haven include under public support in 2018 for contributions?
a. $400,000
b. $352,000
c. $340,000
d. $300,000
6. The following expenditures were among those incurred by a voluntary welfare organization during 2019:
Printing of annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Unsolicited merchandise sent to encourage contributions. . . . . . . . . . . . . . . . . . 20,000
What amount should be classified as fund-raising costs in the society's statement of activities?
a. $0
b. $10,000
c. $20,000
d. $30,000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...