(Multiple choice)

1. How should expenses be reported in an NFPO's statement of activities?

a. As decreases in the net asset classification where the revenues were reported

b. As decreases of permanently restricted net assets

c. As decreases of temporarily restricted net assets

d. As decreases of unrestricted net assets 2. Which of the following is a general rule established by the Financial Accounting Standards Board regarding contributions received in the form of investments by an NFPO?

a. They must be recorded either in a restricted fund or in an unrestricted fund.

b. They must be reported either as restricted support or unrestricted support.

c. They must be recorded as the amount paid by the donor for the investment.

d. They must be reported in an endowment fund.

3. Which of the following financial statements is required for VHWOs but not for ONPOs?

a. Statement of financial position

b. Statement of activities

c. Statement of functional expenses

d. Statement of cash flows 4. If a donor provides that interest earned on an endowment must be used to finance a particular program, how should the interest revenue be classified?

a. As unrestricted

b. As temporarily restricted

c. As permanently restricted

d. As quasi-endowment income 5. In which fund is a mortgage on the land and buildings owned by a VHWO recorded?

a. Unrestricted Current Fund

b. Restricted Current Fund

c. Land, Building, and Equipment Fund

d. Loan Fund 6. Which of the following net asset classifications may have one or more items of donor support?

a. Unrestricted net assets

b. Temporarily restricted net assets

c. Permanently restricted net assets

d. All of the above 7. The Prevent Cancer Organization incurred several expenses during 2004. Which of the following would not be classified as program support?

a. Instruction for cancer prevention to the general public

b. Pamphlets mailed to the general public regarding the "danger signals of cancer"

c. Postage for announcements of the 2004 Kickoff Dinner

d. Salaries of personnel who perform cancer research 8. As a result of its annual fund-raising program, an NFPO receives pledges in the amount of $\$ 300,000$ during December 2004, the last month of its reporting period. Based on its previous history regarding pledges, the NFPO believes that about $\$ 250,000$ will be collected in the first 60 days of 2005 , some will trickle in during the rest of 2005 , and 10 percent will not be collected at all. How much should the NFPO report as contribution revenue on its 2004 financial statements?

a. $\$ 0$

b. $\$ 250,000$

c. $\$ 270,000$

d. $\$ 300,000$
9. Mae Wood, a certified public accountant, donated 60 hours of her time to Food Kitchen, an NFPO that serves food to needy people. She spent 20 hours auditing Food Kitchen's books and 40 hours serving food to the needy. Mae normally earns $\$ 200$ an hour as a CPA, and Food Kitchen normally pays $\$ 5$ an hour to students when it can't find volunteers to serve the needy. How much should Food Kitchen report as contribution revenue for Mae's services?

a. $\$ 0$

b. $\$ 200$

c. $\$ 4,000$

d. $\$ 4,200$