1.A private NFP organization is required to report its expenses

A. In both functional and natural classifications.

B. Only in natural classifications.

C. Only in functional classifications.

D. In both functional and natural classifications if it is a voluntary health and welfare organization; otherwise only in functional classifications.

2.At the start of the year, Habitat for Humanity reports gross contributions receivable of $8,000 and a related allowance for bad debts of $1,200. During the year, $7,000 of these receivables are collected and the rest are written off. Habitat for Humanity records current year contributions of $200,000, of which $190,000 are collected in cash. Its ending allowance for bad debts balance should be 15% of uncollected receivables. These promises are expected to be collected within one year.

What is bad debt expense for the current year?

A. $1,300

B. $1,800

C. $1,700

D. $1,500

3.At the beginning of 2020, a private NFP organization receives a donation of equipment with a fair value of $1,000,000 and an estimated useful life of 5 years, no residual value.

The donor requires the equipment to be used for a specific project. What items appear in the 2020 statement of activities related to this donation?

A. Contributions revenue (increases net assets with donor restrictions) $1,000,000; net assets released from use restrictions (increases net assets without donor restrictions and reduces net assets with donor restrictions) $200,000; expense (reduces net assets without donor restrictions) $200,000.

B. Contributions revenue (increases net assets without donor restrictions) $1,000,000; expense (reduces net assets without donor restrictions) $200,000.

C. Contributions revenue (increases net assets with donor restrictions) $1,000,000; expense (reduces net assets without donor restrictions) $200,000.

D. Contributions revenue (increases net assets without donor restrictions) $1,000,000; expense (reduces net assets with donor restrictions) $200,000.

4.In a private NFP organization's statement of financial position, how is cash received from a capital campaign, to be used to build facilities, reported?

A. Capital assets

B. Combined with the unrestricted cash balance

C. Investments

D. Restricted cash, separately from unrestricted cash

5.A private NFP organization files standardized financial information on Form 990 with what government entity?

A. Internal Revenue Service

B. Department of Commerce

C. Department of Justice

D. Federal Bureau of Investigation