1. When a not-for-profit entity's funds are classified as restricted, who has imposed the restrictions?

a. the entity's board of trustees

b. donors

c. the bondholders

d. government regulators

2. In which of the following circumstances would a not-for-profit organization's net assets be classified as temporarily restricted?

a. donors impose stipulations on the use of resources that expire with the passage of time or that can be fulfilled by actions of the organization

b. donors stipulate that resources must be held intact in perpetuity, but that the income from the gift may be used for any purpose desired by the organization's trustees

c. the entity's board of directors requires that unrestricted resources be set aside for a specific purpose

3. In which classification of net assets are expenses reported?

a. only in unrestricted net assets

b. only in temporarily restricted net assets

c. either in unrestricted or temporarily restricted net assets

d. either in unrestricted, temporarily restricted, or permanently restricted net assets

4. FASB requires not-for-profits to report net assets and resource inflows and outflows in which categories?

a. The board may decide which categories are used for classification

b. Unrestricted, temporarily restricted, or permanently restricted depending on the existence and nature of donor restrictions

c. Unrestricted, temporarily restricted, or permanently restricted depending on the existence and nature of creditor restrictions

d. Unrestricted, temporarily restricted, or permanently restricted depending on the existence and nature of supplier restrictions

5. A not-for-profit organization receives $3,400,000 of pledges in its annual telethon. When should the organization recognize contribution revenue?

a. when cash is received

b. when the pledges are received, provided they are in written form

c. when the pledges are received, less an appropriate allowance for uncollectible pledges