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9 ) According to the FASB, how should unrealized gains on the investment portfolio of a not - for - profit organization be recognized? A

9) According to the FASB, how should unrealized gains on the investment portfolio of a not-for-profit organization be recognized?
A) Not recognized.
B) Reported in the net asset section of the balance sheet.
C) Reported according to whether the gains relate to trading, or held-to-maturity assets.
D) Reported on the statement of activities.
10) 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.
11) For financial reasons, two not-for-profit hospice organizations (hospices A and B) decided to combine to form a new not-for-profit organization. As a result of the combination, the assets and liabilities of the combined hospice were reported at the amounts that had been previously reported by A and B on their financial statements. Under the FASB, the combining of hospices A and B would be classified as which of the following?
A) Merger.
B) Consolidation.
C) Acquisition.
D) Component unit.
12) 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.
13) The Uniform Prudent Management of Investment Funds Act (UPMIFA) provides rules on the use and reporting of:
A) Revenues.
B) Endowment assets.
C) Cash.
D) Liabilities.

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