1. A group of concerned Canadian citizens recently established the Emergency Shelter Society of Ontario. This NFPO focuses on the resettlement of refugees. The board is considering whether to apply for registered-charity status with the Canada Revenue Agency. Which of the following factors is LEAST likely to be relevant to its decision? a. The purpose of the organization is to operate and maintain shelters for refugees in Ontario. b. One of the three directors on the board wishes to keep his involvement private until the NFPO is well established. c. Initially, donations come from anonymous donors who do not require tax receipts; however, the board believes that future donors will want tax receipts. d. The organization was formed by a trust deed. A trust does not offer liability protection to its trustees. 2. Which of the following MOST likely indicates a clear violation of an NFPO's code of conduct? a. John Adams, a volunteer for the local pet shelter, also owns a pet store and has offered a discount on pet food to the local shelter. b. Cecilia Lam used inappropriate language on her Facebook page when referring to the NFPO for which she worked. c. Mark Adams, an employee for a legal society, used the organization's computer to research a new job. d. Hanpreet Kaur, the accountant for a sports rehabilitation society, offered the society's services to his sister free of charge without her needing to qualify. 3. Organizations may implement different types of internal controls. Which of the following is an example of a specific internal control? a. The IT manager assigns network usernames and initial passwords to each user, and the system settings require the passwords to be changed monthly. b. The bookkeeper is required to complete a weekly bank reconciliation. The reconciliations are reviewed and initialed by the treasurer at the end of each month. c. When employees meet new clients, they are expected to treat the clients with respect and integrity. d. When hiring new staff for the organization, the hiring supervisor must ensure they consider all applicants equally, regardless of gender. 4. You work for a small NFPO. Your supervisor has asked you to amend the statement of operations for March with regards to a number of expense items that she said you missed. Which of the following unrecorded items should be reflected in the March statement of operations? a. The organization purchased a new computer for the accounting department on March 31 but paid it on April 15. b. The organization had payroll costs of $3,500 for March which were to be paid on April 5. c. The organization signed a fixed fee contract for $4,000 with a law firm to represent them in an upcoming lawsuit. They paid the full $4,000 to the law firm on signing. The lawsuit is expected to be settled next month. d. The organization paid an outstanding account payable on March 18. 5. An organization's code of ethics articulates the organization's values in detail. Which of the following situations may indicate a violation of an NFPO's code of ethics? a. John works for an NPFO that provides outdoor adventure trips for youth. His child attended one of the workshops at a reduced fee. b. Mohammed, a professional accountant, provided free accounting services to the Rescue Wildife Foundation. c. Celia, a director for the Society of Health and Wellness (SHW), mentioned to her brother, a CEO for a large funding agency, that SHW was underfunded for the year. d. Peter, a director of a foundation, disagreed with information provided to a client and recommended a change to the Procedures Handbook used by staff. 6. Which of the following is the MosT effective internal control? a. using a computer to record accounting transactions b. separating the recording and reporting of transactions c. hiring additional internal auditors to monitor accounting transactions and systems d. ensuring that employees who have custody of assets also record transactions related to those assets 7. Section 4400 ofPart III of the CPA Canada Handbook permits an NFPO to adopt different terminology in describing the results of operations and the cumulative results of operations over time. Which of the following combinations of terminology is acceptable under Part III? a. net income; retained earnings b. excess of revenue over expenses; accumulated surplus c. net income; accumulated surplus d. excess of revenue over expenses; members' equity. An NFPO may receive substantial contributed materials and services. often these contributions are not recorded because of record-keeping and valuation challenges. Which of the following is NOT a required condition to recognize contributed materials and services in the financial statements of an NFPO? a. the fair value of the materials and services can be reasonably estimated b. the materials and services are used in the normal course of the organization's operations c. the materials and services would otherwise have been purchased d. an arm's length party contributed the materials and services The ABC Society completed its Friends of ABC Society Spring Fundraising campaign, which raises funds for children and youth initiatives. ABC Society generated $75,000 in cash donations and an additional $45,000 in pledges. The Society's past experience indicates that 10 percent of all pledges prove to be uncollectible. At December 31, 2020, its fiscal year end, $10,000 of pledges bave been collected. Which of the following amounts is the value of net pledge receivable at December 31,2020 ? a. $40,500 b. $30,500 c. $31,500 d. $35,000 10. The Helpful Hands Society, formed in January 2020, undertook a fundraising campaign in the summer of 2020. The NFPO was able to raise $450,000 in pledges. The Society expects to collect at least 80 percent of these pledges. As of December 31, 2020, the society collected $125,000 in pledges from the summer campaign. Which of the following amounts is the value of net pledge receivable at December 31,2020 ? a. \$0 b. $125,000 c. $360,000 d. $235,000