1. Choose correct or incorrect sentences.

Expense of private non-for-profit organization is reported by 'function classification'.

Detailed statement of nature and function is reported in the notes in the financial statements.

A. Correct statement Correct statement

B. Incorrect statement Incorrect statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

2. In Private non-for-profit organization, cause of statement of activity reclassifications

are as follow, except for :

A. Operating activities

B. Acquisition of PPE

C. Endowment

D. Time restriction

3. Choose correct or incorrect statements.

Items that is included in the with donor restriction is reclassified by without donor

restriction by achievement of purpose or passage of time.

In aforementioned case , the amount corresponding to changes in net asset(with) :

has no effect, changes in net asset(without) : decrease.

If two or more temporary restrictions are imposed on a contribution, the effect of the

expiration of those restrictions shall be recognized in the period in which the last

remaining restriction has expired.

A. Correct statement Incorrect statement Incorrect statement

B. Incorrect statement Incorrect statement Incorrect statement

C. Incorrect statement Correct statement Correct statement

D. Correct statement Incorrect statement Correct statement

4. Choose correct or incorrect statements.

Governmental statement of cash flow start calculation from operating income.

Non-for-profit organizational statement of cash flow start calculation from changes in

total net asset.

A. Incorrect statement Correct statement

B. Incorrect statement Incorrect statement

C. Correct statement Correct statement

D. Correct statement Incorrect statement

5. In non-for-profit organizational statement of cash flow,

without, operating, and time restriction (short-term) items are reported in CFO.

PPE, endowment, time restriction (long-term) items are reported in CFF.

A. Incorrect statement Correct statement

B. Correct statement Correct statement

C. Incorrect statement Incorrect statement

D. Correct statement Incorrect statement

6. Choose correct or incorrect statements.

An unconditional promise to give (pledge) have to be reported in with donor

restriction column regardless of collection timing. (ex. collection of current year vs.

collection of next year)

In aforementioned case , if cash is collected, journal entries are as follows :

Cash Contribution receivable

Contribution_without Contribution_with

A. Incorrect statement Incorrect statement

B. Correct statement Correct statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

7. Choose correct or incorrect statements.

In statement of activity of private NFPO, if with donor restriction item is reclassified

into without donor restriction, corresponding disclosure to notes is required.

Contribution is an unconditional transfer of cash or other assets to an entity or a

settlement or cancellation of its liabilities in a voluntary non-reciprocal transfer by

another entity acting other than as an owner.

A. Incorrect statement Incorrect statement

B. Correct statement Correct statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

8. Choose correct or incorrect statements.

In non-for-profit organization,

Reporting format of expense of the financial statements is only functional classification.

In addition, natural classification is reported in the notes to the financial statements.

A. Incorrect statement Incorrect statement

B. Correct statement Correct statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

9. Choose correct or incorrect statements.

In non-for-profit organization,

depreciation is included in total expenses.

On the contrary, Grants to other organizations is not.

A. Incorrect statement Incorrect statement

B. Correct statement Correct statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

10. A donor donated $10,000 to non-governmental, non-for-profit organization with no

stipulation. If board of trustee of the non-for-profit organization stipulate this

contribution at specified use, this contribution should be classified as ( with /

without) donor restriction.

A.

B.

C. both

D. Neither

11. A donor donated $10,000 to nongovernmental, non-for-profit organization and

stipulated that this contribution should be used to general operating expense in

current year. In this case, this contribution should be classified to the ( with /

without) donor restriction.

A.

B.

C. both

D. Neither

12. Choose correct or incorrect statements.

In non-for-profit organization,

Program service is similar to CGS of the enterprise accounting.

The other total expenses is included in supporting activity.

A. Incorrect statement Incorrect statement

B. Correct statement Correct statement

C. Incorrect statement Correct statement

D. Correct statement Incorrect statement

13. Cash received with donor-imposed restriction limiting its use to long term purposes,

such as construction of a new building, is displayed as a ( ) activity on the

statement of cash flows of a not-for-profit organization.

A. investing

B. operating

C. financing

D. supporting

14. A non-governmental non-for-profit organization borrowed money of $5,000 to a

financial institution. The purpose of the borrowing was to purchase PPE. In this case,

when organization prepare statement of cash flow, cash inflow and out flow is

reported to the ( ) activity.

A. investing

B. operating

C. financing

D. supporting

15. AIFA university's asset : $15,000,000, liability : $9,000,000(including deferred revenue

$500,000). As a result, AIFA's net assets balance is : $6,500,000

A. $6,000,000

B. $9,000,000

C. $15,000,000

D. $6,500,000

16. Child Care Centers, Inc., a not-for-profit organization, receives revenue from various

sources during the year to support its day care centers. The following cash amounts

were received during Year 1.

$2,000 restricted by the donor to be used for meals for the children.

$1,500 received for subscriptions to a monthly child care magazine with a fair

market value to subscribers of $1,000.

$10,000 to be used only upon completion of a new playroom that was 75

percent complete at December 31, Year 1.

What amount should Child Care Centers record as contribution revenue in its Year

1 statement of activities?

A. $2,000

B. $2,500

C. $10,000

D. $11,000

17. Oz, a non-governmental not-for-profit organization, received $50,000 from Ame

Company to sponsor a play given by Oz at the local theater. Oz gave Ame 25

tickets, which generally cost $100 each. Ame received no other benefits. What

amount of ticket sales revenue should Oz record?

A. $0

B. $2,500

C. $47,500

D. $50,000

18. The Jackson Foundation, a not-for-profit organization, received contributions in Year

1 as follows:

Cash contributions of $500,000 without donor restrictions.

Cash contributions of $200,000 with donor restrictions with specific

requirements relative to the acquisition of property.

Jackson's statement of cash flows in Year 1 should include which of the following

amounts?

Operating

activities

Investing

activities

Financing

activities

A. $700,000 $0 $0

B. $500,000 $200,000 $0

C. $500,000 $0 $200,000

D. $0 $500,000 $200,000

19. A nongovernmental not-for-profit organization borrowed $5,000, which it used to

purchase a truck. In which section of the organization's statement of cash flows

should the transaction be reported?

A. In cash inflow and cash outflow from investing activities.

B. In cash inflow and cash outflow from financing activities.

C. In cash inflow from financing activities and cash outflow from investing activities.

D. In cash inflow from operating activities and cash outflow from investing activities.

20. State University received two contributions during the year that must be used to

provide scholarships. Contribution A for $10,000 was collected during the year, and

$8,000 was spent on scholarships. Contribution B is a pledge for $30,000 to be

received next fiscal year. What amount of contribution revenue should the university

report in its statement of activities?

A. $8,000

B. $10,000

C. $38,000

D. $40,000