41. Under FASB standards, which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization? A. Land was donated to the Friends of the Forest Society for conversion into a nature trail. B. The original courthouse was donated to the Historical Preservation Society for conversion into a museum C. An art collector donated a famous oil painting to a local art museum for display in its exhibit hall. D. A valuable coin collection was donated to the Youth for Conservation organization, which the organization plans to sell at current market prices. 42. When a nongovernmental not-for-profit organization spends money for the purpose for which an external donor intended, the expense is reported as a: A. Decrease in net assets with donor restrictions. B. Decrease in net assets without donor restrictions. C. Decrease in current-restricted fund balance. D. Decrease in committed fund balance. 43. In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year? A. $1,000 B. $1,600. C. $1,300 D. $2,300. 44. In the current year, the not-for-profit organization (NFP) How to Read Government Financial Reports received both cash of $1,000 and pledges of $2,000 to be used for teaching citizens how to read government financial reports. During the year the organization spent $1,500 teaching citizens to read financial statements. Assuming the NFP has a policy of spending its restricted resources first, in the current year what amount of contributions can be reclassified as without donor restrictions? A. $1,000 B. $1,500. C. $2,000. D. $3,000 45. During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise $500,000 in funds over the next year. According to the FASB, how would this pledge be recorded? A. Contribution-With Donor Restrictions. B. Contribution Without Donor Restrictions. C. Deferred Revenue. D. It would not be recorded. 46. 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. 47. Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the registration of students; Centre provided scholarships of $12,000 to the registered students. The entry to bill the tuition and fees and scholarships would include a: A. Debit to Tuition and Fees, $50,000. B. Debit to Tuition Discounts and Allowances, $12,000. C. Credit to Tuition and Fees, $38,000. D. Credit to Tuition Discounts and Allowances, $14,000. 48. Dogs-are-Us, an animal shelter for dogs, contacted a donor, Marie Pedigree, who today promised to donate $10,000 to be used to pay for a dog trainer, she, however prefers to pay in $2,000 installments over the next five years. The first installment will be received at the end of year 1. After applying a discounting factor, the net realizable value of the full donation is $8,750. The journal entry for the pledge would include a: A. Credit to Contributions--without donor restrictions, $8,750. B. Credit to Discount on Contributions Receivable, $1,250. C. Debit to Cash, $10,000. D. Debit to Contributions Receivable, $8,750. Use the following information to answer Questions 49 and 50: Faith Hospital has over 1,000 beds and performs major surgeries. Faith Hospital billed an insurance provider for a major medical procedure for $30,000. 49. The entry for the billing to the insurance provider would include a: A. Debit to Contractual Adjustment, $30,000. B. Debit to Provision for Uncollectible Accounts, $30,000. C. Credit to Patient Revenue, $30,000. D. Credit to Contractual Adjustment, $30,000. 50. The insurance provider paid only $24,000, which was the final settlement. The journal entry to record the entry for the contractual adjustment would include a: A. Debit to Cash, $24,000. B. Credit to Contractual Adjustment, $6,000. C. Debit to Contractual Adjustment, $24,000. D. Credit to Accounts Receivable, $6,000