1. What authoritative body (s) is (are) responsible for establishing financial accounting standards for NNOS? Established in 1973, the Financial Accounting Standards Board is the independent, private sector, not for profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not for profit organizations that follow Generally Accepted Accounting Principles. 2. (3) NNOs distinguish between restricted and unrestricted funds. Why is this distinction important? NNOs need to distinguish between restricted and unrestricted funds in order to separate resources that may be used at the discretion of the governing board and those which have restrictions. 3. (4) What is the major difference in accounting for the General Fund of a hospital and the unrestricted fund of other NNOs? Unlike other NNOs, hospitals combine their revenues from unrestricted resources and restricted resources in the General Fund accounts and financial statements. In addition, hospitals account for property and equipment, accumulated depreciation and depreciation expense, and long-term obligations associated with the acquisition of property and equipment in the General Fund whereas other NNOs account for these assets and liablilities in plant funds. 4. (5) What is the major difference in accounting between conditional and unconditional pledges? Give an example of each. Unconditional pledges are recorded as revenues while conditional pledges are not recorded until they become unconditional. An example of unconditional pledge is when a donor makes a nonrevocable offer to give one million dollars to a hospital. An example of conditional pledge is when a donor offers to contribute one million dollars if the hospital receives less than ten million dollars from government funding in the next fiscal year. 5. (13) What capital assets (if any) of ONNOs need to be depreciated? Historical treasures and works of art that have estimated useful lives that are extraordinarily long. To qualify, such assets must have cultural, historical, or esthetic value that is worth preserving perpetually, and the holder must have and exercise the financial and technological ability to protect and preserve the asset. 6. (14) Identify three different types of endowment funds and explain how they differ. Unrestricted, term and quasi