Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In developing its Statement of Cash Flows, the Do Good Foundation, a not-for-profit entity: a. Must use the indirect method. b. Must use the direct

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In developing its Statement of Cash Flows, the Do Good Foundation, a not-for-profit entity: a. Must use the indirect method. b. Must use the direct method: c. Moy use the indirect or direct method. d. Should prepare a supplemental Statement of Changes in Financial Position. The statement of cash flows prepared for a not-for-profit entity differs from the statement of cash flows prepared for a commereial entity in that not-for-profit entities: a. Exclude securitios that may otherwise meet the cash equivalent definition. b. Moy use the direct method. o. May use the indirect method. d. Classify cash flows in any one of three categories. The Cood Shepherd Animol Sheiter needed extra coges to care for animals delivered to the shelter. A carpenter in the community volunteered his services to construct the coges. As o result of benefitting from these contributed services, the animal shelter would: a. Prepare disclosures of the contributed services only. b. Record contribution revenue in the omount of the fair value of the carpenters time. c. Record a memo entry to net assets: d. Not record or disolose onything. The Housing Foundation, Ine, provides housing subsidies to needy fomilies who qualify under certain income guidelines. Federated Charities, o community outreoch organization, arranges for fomilies to apply for aid from the Housing Foundation, receives rent and other subsidies on the behalf of specifie fomilies, and pays housing related costs (e.g, rents, utilities, etc.) direotiy to landlords and others bosed on the opplications approved by the foundation. Cash received by Federated Chorities from the Housing Foundation would be reported as: a. Contributions. b. Rent Revenues. c. A liability. d. Note disclosure only. A not-for-profit organization receives resources in a transoction properly ciassified as an exchange transoction. This transaction would be properiy reported as: a. Revenues in the net ossets without donor restrictions class. b. Revenues in the net assets with donor restrictions class. c. Revenues in the net assets with conditional restrictions class. d. A net reduction of premium expense

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

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

14th Edition

1292209178, 9781292209173

More Books

Students also viewed these Accounting questions

Question

Describe Yaloms therapeutic factors for group psychotherapy.

Answered: 1 week ago