Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting for governmental and nonprofit organizations 1. Which of the following is not a criterion that would permit contributed services to be recognized as a

Accounting for governmental and nonprofit organizations
image text in transcribed
image text in transcribed
1. Which of the following is not a criterion that would permit contributed services to be recognized as a revenue? (a) The services must create or enhance nonfinancial assets. (b) The services must be provided by an individual or group approved by the IRS. (c) The services must require specialized skills and be provided by individuals possessing those skills. (d) The services would typically be purchased if not provided by donation. 2. Which of the following is not true regarding net assets released used in private nonprofit hospital accounting? (a) Net assets released made on the basis of program or purpose are recorded when the purpose is fulfilled. (b) Net assets released made on the basis of time are made when the applicable time period arrives. (c) Net assets released made on the basis of plant acquisition are made when the plant is acquired. (d) Net assets released are only allowed from with donor restrictions-permanently restricted to with donor restrictions--temporarily restricted net assets. 3. Which of the following is not true regarding contributions receivable for private nonprofit hospitals? (a) A contribution receivable is recognized as revenue when it becomes unconditional. (b) A pledge that will be received in installments over several years will be recorded at the present value of the future receipts, and the incremental value each year would be recorded as interest revenue. (c) A conditional contribution receivable would be recorded as deferred revenue. (d) An unconditional contribution receivable stipulated by the donor to be used for the next fiscal year would be recorded as a temporarily restricted revenue in the year received. 4. The statement of operations for private nonprofit health care entities: (a) Must show the change in net assets for each of the net asset classes (without donor restrictions and with donor restrictions). (b) Must show all revenues first, followed by all net assets released, then by all expenses. (c) Must break out revenues and expenses by net asset class (without donor restrictions and with donor restrictions). (d) None of the above. 5. In 20X6, a nonprofit, private hospital received a pledge of $250,000 restricted to cancer research. The cash was received and the research expenditures took place in 20X7. The hospital would record: (a) A with donor restriction revenue in 207 and a with donor restriction expense in 20X7. (b) A with donor restriction revenue in 20X6 and a without donor restriction expenditure in 20X7. (c) A with donor restriction revenue in 20X6 and a without donor restriction expense in 20X7. (d) A without donor restriction and expense in 20X7. 6. Under the current FASB standards for nonprofit, private hospitals, depreciation: (a) Must be recorded as an without donor restriction expense. (b) Must be recorded as a with donor restriction expense. (c) Is never recorded. (d) May be recorded as an without donor restriction expense or a with donor restriction expense, depending upon how the related asset is classified

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: William C. Boynton, Walter G. Kell, Raymond N. Johnson, Dr William Boynton

7th Edition

047118909X, 978-0471189091

More Books

Students also viewed these Accounting questions

Question

Summarize the evidence for sex differences in same-sex aggression.

Answered: 1 week ago