Select the best answer for each of the following items:
1. Which NNOs must record depreciation on exhaustible assets?
(a) Hospitals.
(b) VHWOs.
(c) ONNOs.
(d) All of the above.

2. Which statement relating to VHWOs is most nearly correct?
(a) Use modified accrual accounting practices.
(b) Report expenditures on a functional basis.
(c) Record pledges when they are received.
(d) Recognize donated services as revenue if measurable.

3. Which of the following funds of a VHWO does not have a counterpart fund in governmental accounting?
(a) Current Unrestricted Fund.
(b) Land, Building, and Equipment Fund.
(c) Agency Fund.
(d) Endowment Fund.

4. A voluntary health and welfare organization received a pledge in 2024 from a donor specifying that the amount pledged be used in 2026. The donor paid the pledge in cash in 2025. The pledge should be accounted for as
(a) A deferred credit in the balance sheet at the end of 2024 and as support in 2025.
(b) A deferred credit in the balance sheet at the end of 2024 and 2025, and as support in 2026.

(c) Support in 2026.
(d) Support in 2025 and no deferred credit in the balance sheet at the end of 2024.
(e) None of the above.

5. Which of the following should be used in accounting for nonprofit health agencies?
(a) Fund accounting and accrual accounting.
(b) Fund accounting but not accrual accounting.
(c) Accrual accounting but not fund accounting.
(d) Neither accrual accounting nor fund accounting.