13. Which of the following would be considered "contribution revenue or support" of a not-for-profit organization under FASB standards?

A) Gain on disposal of capital assets.

B) Money received from a fund-raising campaign.

C) Money received from rental of surplus office space.

D) Investment earnings.

14. Which of the following is true of a Statement of Activities prepared for a private college or university?

A) All expenses are shown as without donor restriction.

B) Reclassifications from net assets without donor restriction to net assets with donor restrictions are reported when the governing board designates unrestricted funds for permanent investment in the endowment.

C) Only realized gains or losses on investments are reported.

D) All of the above are true.

15. For private colleges and universities, reclassifications of net assets with donor restrictions to net assets without donor restrictions could be made:

A) for satisfaction of purpose restrictions.

B) when time restrictions expire.

C) if the resources donated for capital assets have been expended on such assets.

D) all of the above.

16. Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fund-raising appeal can be reported with program expenses rather than as fund-raising expenses?

A) Purpose.

B) Audience.

C) Time period.

D) Content.

17. In addition to a Statement of Financial Position and a Statement of Activities, a private college or university is required to present:

A) a Statement of Functional Expense (may be disclosed in the notes to the financial statements).

B) a Statement of Cash Flows.

C) both (a) and (c).

D) neither (a) nor (c).

18. A private university charged $18,000,000 in tuition and fees during an academic year. Graduate assistantships, for which services were required, were awarded in the amount of $1,200,000. Scholarships, for which no services were required, were awarded in the amount of $1,400,000. The net tuition and fees that would be reported in the Statement of Activities would be:

A) $18,000,000.

B) $16,800,000.

C) $16,600,000.

D) $15,400,000.

19. A donor gave a gift of $50,000 cash to a private college in 2003 with instructions that the funds be expended for biology research. The funds were expended in 2004. The private college would recognize the $50,000 as:

A) Revenue in 2003 increasing net assets with donor restrictions; recognize the expense in 2004, and reclassify the resources from net assets with donor restrictions to net assets without donor restrictions in 2004.

B) Deferred revenue in 2003 and as revenue in 2004. The expense would be recognized in 2004.

C) Deferred revenue in 2003 and as revenue in 2004, increasing net assets with donor restrictions. The expense would be recognized also in 2004, and reclassify the resources from net assets with donor restrictions to net assets without donor restrictions in 2004.

D) Either (b) or (c), depending upon the policy of the private college.

20. A donor gave $500,000 to a private college in 2003 with the expressed intent that the funds be used in 2004. In addition, another donor gave $20,000 in 2003 for student scholarships. During 2003, $12,000 was expended on scholarships. The amount that should be recognized as contribution revenue in 2003 is:

A) $12,000.

B) $20,000.

C) $512,000.

D) $520,000.

21. The FASB standards apply to:

A) Private sector, not-for-profit hospitals.

B) Governmental health care organizations.

C) Both of the above.

D) Neither of the above.

22. A private sector not-for-profit hospital received a gift of $100,000 cash on the first day of 2003 with a donor restriction that the resources be used to purchase certain equipment. The equipment was purchased on the same day and is expected to last five years with no salvage value. The Statement of Financial Position as of December 31, 2003 would reflect net assets of:

A) $80,000 without donor restrictions and $0 with donor restrictions.

B) $0 without donor restrictions and $80,000 with donor restrictions.

C) Either (a) or (b), depending on the policy of the hospital.

D) None of the above.

23. A private sector, not-for-profit hospital received a pledge of $100,000 late in 2003, with no purpose restriction (the pledge was not discounted). The pledge card indicated that the funds were to be received in 2004. Cash was turned over to the hospital in 2004. The not-for-profit hospital would recognize contribution revenue in:

A) 2003.

B) 2004.

C) 2005.

D) Either 2003 or 2004, depending on the policy of the hospital.

24. The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?

A) Net assets with donor restrictions.

B) Net assets without donor restrictions.

C) Internal payable.

D) The resources would not be reported on the statement of financial position.

25. Which of the following is true regarding accounting and financial reporting for not-for-profit healthcare organizations?

A) Charity care is reported as operating revenue and expense.

B) Contractual adjustments with insurance companies are reported as operating revenue and expense

C) Both of the above.

D) Neither of the above.