1. On a Statement of Activities for a not-for-profit entity, what are the broad categories of supporting service costs required to be reported?

Fund-raising expenses and supporting services expenses.

Program services expenses and administrative services expenses.

Operating expenses and administrative expenses.

Fund-raising expenses and administrative expenses.

Fund-raising expenses and operating expenses.

2. AB is a private not-for-profit entity. It acquires YZ, another private not-for-profit entity. The acquisition value is $1.10 million. YZ has net assets with a book value of $680,000 but a fair value of $790,000. Officials for AB expect that YZ will be predominantly supported by contributions in the future. After the acquisition, what amount of goodwill will be reported on the combined balance sheet?

Multiple Choice

$0

$420,000

$310,000

$110,000

A private not-for-profit health care entity has the following account balances:

Revenue from newsstand	$	56,000
Amounts charged to patients		860,000
Interest income		36,000
Salary expensenurses		106,000
Provision for bad debts		10,000
Undesignated gifts		86,000
Contractual adjustments		116,000

What is reported as the organizations net patient service revenue?

Multiple Choice

$860,000

$734,000

$946,000

$744,000

A voluntary health and welfare entity has the following expenditures:

Research to cure disease	$	56,000
Fund-raising costs		66,000
Work to help disabled		36,000
Administrative salaries		86,000

How should the charity report these items?

Multiple Choice

Program service expenses of $178,000 and supporting service expenses of $66,000.

Program service expenses of $152,000 and supporting service expenses of $92,000.

Program service expenses of $158,000 and supporting service expenses of $86,000.

Program service expenses of $92,000 and supporting service expenses of $152,000.