Select the best answer for each of the following items: 1. Which NNOs must record depreciation on
Question:
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 2019 from a donor specifying that the amount pledged be used in 2021. The donor paid the pledge in cash in 2020. The pledge should be accounted for as
(a) A deferred credit in the balance sheet at the end of 2019 and as support in 2020.
(b) A deferred credit in the balance sheet at the end of 2019 and 2020, and as support in 2021.
(c) Support in 2021.
(d) Support in 2020 and no deferred credit in the balance sheet at the end of 2019.
(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.
(AICPA adapted)
Balance SheetBalance 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...
Step by Step Answer:
1 d All of the above 2 b Report expenditures on a functional basis 3 c Age...View the full answer
