1. When a temporary restriction on resources of a nongovemmental not-for-profit entity is met by the incurrence of an expense for the restricted purpose: a The expense is reported in the statement of activities as an increase in unrestricted net assets b Amounts reported in the temporarily restricted net assets are reclassified as unrestricted net assets c The entry is a debit to expense and a credit to the program services d The expense is reported in restricted net assets 2. A nongovernmental not-for-profit entity gives donors a sweatshirt imprinted with its logo when they pay $25 dues. The value of the sweatshirt is approximately $25. This transaction is most likely reported as: a An exchange transaction b An agency transaction c A contribution d A gift in kind 3. How will a nongovernmental not-for-profit entity record an agency transaction in which it receives resources? a No entry is made in the accounts. b Dobit the asset account and credit contribution revenue. c Debit the asset account and credit temporarily restricted net assets. d Debit the asset account and credit a llability account. 4. Unconditional promises to give that are collectible within one year of the financial statement date: a Should be reported at their gross amount b Should be reported at the gross amount less an allowance for uncollectible accounts c Should be reported at the present value of the amounts expected to be collected, using the donor's incremental borrowing rate d Should not be reported until collected 5. In preparing the statement of cash flows for a nongovernmental not-for-profit entity, cash contributions that are restricted for long-term purposes are classified as: a Operating activities b Investing activities c Financing activities d None of the above