1. In a not-for-profit organization, donations received for a particular purpose are recorded as Net Assets without donor restrictions. Donations that are cannot be spent, but the earnings can be are referred to as Net Assets without donor restrictions. Profits and donations with no donor specifications are referred to as Net Assets with donor restrictions. True or False?

2.The Excess of Revenues over Expenses focuses on operating activities, while the Increase in Net Assets without Donor Restrictions includes non-operating changes to owners’ equity. True or false?

3. Preferred stock is ownership rights with predetermined dividend payments. True or false?

4. The following assets are in the correct order of liquidity: 1 - accounts receivable, 2- inventory, 3- cash, and 4 - marketable securities? True or False?

5. Retained earnings are the sale of ownership shares to generate capital. True or false?

6. Common stock is generated over time that has not been distributed to owners. True or false?

7. Organizations disclose their accounting policies in the notes to the financial statements because GAAP often allows for different alternative choices, and these decisions might influence how the numbers are presented on the financial statements. True or false?

8. Charity care is reported in the notes for not-for-profit health care organizations, but revenues and expenses are not recorded in the operating statement. True or false?