1. A voluntary health and welfare organization received a $700,000 permanent endowment during the year.The donor stipulated that the income and investment appreciation be used to maintain the organization's senior center.The endowment fund reported a net investment appreciation of $80,000 and investment income of $50,000.The organization spent $60,000 to maintain its senior center during the year.What amount of change in net assets with donor restrictions should the organization report?

A. $700,00

B. $770,000

C. $780,000

D. $830,000

2) During the current year, a nongovernmental, not-for-profit hospital received a gift of $10 million to be used for an addition to the physical therapy unit.In addition, the hospital also received an investment valued at $3 million with a donor-imposed restriction allowing the use of the investment earnings only for paying the salary of an additional physical therapist.As of the end of the current year, a physical therapist had not been hired, and earnings on the investment for the year were $150,000.What amount should be reported as net assets with donor restrictions in the year-end statement of financial position?

A. $3,150,000

B. $10,150,000

C. $13,000,000

D. $131,150,000

3) How should operating expenses for a nongovernmental not-for-profit organization be reported on the statement of activities?

A.Cash flows from operating activities.

B.Change in net assets without donor restrictions.

C.Net assets released from donor restrictions.

D.Net assets without donor restrictions.

4) Which of the following year-end financial statements is required for a nongovernmental, not-for-profit organization?

A.Statement of changes in financial position

B. Statement of cash flows.

C.Statement of retained earnings.

D.Statement of revenue, expenses, and changes in fund net position.

5) The net asset reclassifications of a nongovernmental not-for-profit organization would be reported on which of the following?

A.Statement of financial position.

B.Statement of activities.

C.Statement of cash flows.

D.Statement of functional expenses.

6) On a nongovernmental not-for-profit entity's statements of activities, which of the following amounts shouldnotbe netted together under any circumstances?

A.Revenues and expenditures from the sale of used equipment.

B.Revenues and expenditures from an annual fundraising campaign.

C.Investment income, custodial fees, and other advisory expenditures.

D.Gains and losses from exchange rates or other foreign currency translations.

7) A donor gives $10,000 to a nongovernmental, not-for-profit organization with instructions that it must be used to fund the organization's general operating expenses during the following fiscal year.The donation will increase the organization's

A.Net assets without donor restrictions.

B.Net assets with donor restrictions

C.Pledges receivable.

D.Retained earnings.

8) A not-for-profit organization is exempt from reporting which of the following contributed services as revenue?

A.A CPA prepares the organization's tax return.

B.A special education teacher tutors children with learning disabilities.

C.A carpenter builds shelves for the office.

D.An attorney solicits contributions on behalf of the organization.

9)The primary purpose of a not-for-profit organization's statement of activities is to provide relevant information to its

A.Resource providers.

B.Managers.

C.Beneficiaries.

D.State regulatory body.

10) Which of the following assets of a nongovernmental, not-for-profit charitable organization must be depreciated?

A.A freezer costing $150,000 for storing food for the soup kitchen.

B.Building costs of $500,000 for construction in progress for senior citizen housing.

C.Land valued at $1 million being used as the site of the new senior citizen home.

D.A bulk purchase of $20,000 of linens for its nursing home.

11) What is a primary purpose and focus of the statement of activities for a nongovernmental, not-for-profit organization?

A.To demonstrate the ability of the organization to meet donor-imposed restrictions on resources.

B.To demonstrate how the organization's resources are used in providing various programs and services.

C.To provide relevant information about the cash receipts and cash payments of the organization during a period.

D.To provide a cost-benefit analysis of the use of the organization's resources.

12) Which of the following types of information would be included in total net assets in the statement of financial position for a nongovernmental, not-for-profit organization?

A.Total current net assets and total other assets.

B.Total current assets and assets with donor restrictions.

C.Net assets without donor restrictions and net assets with donor restrictions.

D.Net assets without donor restrictions, net assets with donor restrictions, and total current assets.

13) When should a conditional pledge to a nongovernmental not-for-profit organization be recognized as revenue?

A.Immediately.

B.When the cash is received.

C.When the pledge conditions are met.

D.At the beginning of the next fiscal period.

14) In the preparation of the statement of activities for a nongovernmental not-for-profit organization, expenses are reported as decreases in which of the following net asset classes?

Net assets with donor restrictions Net assets without donor restrictions

A.Yes Yes

B.Yes No

C.No Yes

D.No No

15) The purpose of a statement of financial position for a nongovernmental not-for-profit entity is to provide relevant information about

A.The cash receipts and cash payments during a period in time.

B.The effects of transactions and other events and circumstances that change the amount and nature of net assets.

C.The assets, liabilities, and net assets, and about their relationships to one another at a moment in time.

D.The changes in net assets with donor restrictions and net assets without donor restrictions for a period of time.

16) In a not-for-profit organization, which of the following should be included in total expenses?

Grants to other organizations Depreciation

A.Yes Yes

B.Yes No

C.No Yes

D.No No

17) Box, a nongovernmental not-for-profit organization, had the following transactions during the year:

Proceeds from sale of investments$80,000

Purchase of property, plant, and equipment$10,000

Proceeds from long-term debt$100,000

Loss on sale of investment$5,000

What amount should be reported as net cash provided by financing activities in Box's statement of cash flows?

A.$70,000

B.$75,000

C.$80,000

D.$100,000

18) Which of the following would a nongovernmental not-for-profit educational institution report as program services?

A.Publicity costs.

B.Teacher salaries.

C.Management salaries.

D.Fundraising expenses.