21. Financial statements require that functional expenses be reported: A. Only using a statement of functional expenses for all types of not-for-profit organizations. B. In the statement of activities, reported in the disclosure notes, or as a separate statement of functional expenses for all types of not-for-profit organizations. C. Only in the disclosure notes for all types of not-for-profit organizations. D. Only for voluntary health and welfare organizations. 22. Which of the following entities should recognize depreciation expense in its statement of activities? A. Not-for-profit hospital. B. Not-for-profit university. C. Not-for profit foundation. D. All of the above. 23. A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements? A. Statement of activities. B. Statement of financial position. C. Statement of cash flows. D. Statement of functional expenses. 24. The purpose of the reporting of functional expenses is to A. Report on the net income of each program and the related direct and indirect expenses. B. Report on program expenses and supporting expenses. C. Report on the natural expenses (object-of-expense), as well as program and support functions expenses. D. Report on the cash flows of each program and that of supporting the programs. 25. Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away? A. Net assets with donor restrictions. B. Permanently restricted net assets. C. Endowment assets. D. Net assets without donor restrictions. 26. A local CPA volunteered her time to help install and test new computer accounting system software for an after-school development organization that serves disadvantaged children. If the services had not been donated the organization would have had to hire a consultant to install the system. In accordance with the FASB standards, the value of the CPA's time devoted to helping the organization should be recorded as: A. Contribution-with donor restrictions. B. Program Expense. C. Machinery & Equipment. D. It would not be recorded. 27. The board of directors for a voluntary health and welfare 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 assetswith donor restrictions. B. Net assets with no donor restrictions. C. Permanently restricted net assets. D. Net assets with board restrictions. 28. A donor, Haley Puddin, puts an entry into her last will and testament to leave Kudzoo University in Mississippi $15,000,000 on October 10, 2018 to be used to pay for a new classroom building named after her late husband, Buford Puddin. The university was immediately informed of this bequest by the donor's attorney on October 21, 2018. The donor dies on January 2, 2019. The university receives the check for the bequest on May 4, 2019. The classroom building planning and construction began December 3, 2019 and was placed into operation in January 2, 2021. When should the $15,000,000 bequest be recognized by Kudzoo University? A. October 21, 2018. B. January 2, 2019. C. May 4, 2019 D. January 2, 2021. 29. A donor pledges $100,000 on December 15, 2018 to be paid in one amount to Columbia University. No donor restrictions were applied. The contribution is to be received four years from the pledge. If the present value of $1 at 3 percent is 0.8885, the journal entry to record the pledge would include: A. Debiting contributions receivable, $88,850. B. Crediting contributions with donor restrictions, S100,000. C. Crediting discount of pledges, $11,150. D. Debiting net assets without donor restrictions, $100,000. ftenends 30. Cathleen Hallmark, president of the save-the-professor foundation, a non-for-profit, spends 80 percent of her time on presidential and board-related duties, which half of that time is also spent fundraising. She spends the remaining 20 percent of her time working on mission-oriented activities. On the statement of activities, Cathleen Hallmark's salary and benefits: A. Should all be recognized as management and general expenses. B. Should be subdivided as half in fundraising and half in management and general expenses. C. Should be subdivided as 20 percent in program expenses, 40 percent in management and general, with the remainder in fundraising expenses. D. Can never be allocated to program expenses