Please answer these MCQs:

2. What are the financial statements and other information required for not-for-profit organizations?

A) Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Expense by Nature and Function (may be disclosed in the noted to the financial statements).

B) Balance Sheet, Statement of Revenue Expenditures and Change in Fund Balance.

C) Statement of Revenues, Expenses and Changes in Net Position, Statement of Cash Flows.

D) Statement of Financial Position, Statement of Activities.

4. Which of the following would be a contribution increasing net assets with donor restrictions?

A) A contribution by a donor in the amount of $1,000,000, set aside by the governing board as funds not to be expended.

B) A contribution by a donor in the amount of $1,000,000, set aside by the donor as funds not to be expended.

C) Both of the above.

D) Neither of the above.

6. A skilled carpenter replaced the roof for a private not-for-profit free of charge. The not-for-profit would have had to pay $5,000 for this replacement if not donated. What entry should the not-for-profit make?

A) Building 5,000

Contribution revenue 5,000

B) Building 5,000

Construction expense 5,000

C) Repairs 5,000

Contribution revenue 5,000

D) No entries are necessary for the transaction.

14. Which of the following is true of a Statement of Activities prepared for a private college or university?

A) All expenses are shown as without donor restriction.

B) Reclassifications from net assets without donor restriction to net assets with donor restrictions are reported when the governing board designates unrestricted funds for permanent investment in the endowment.

C) Only realized gains or losses on investments are reported.

D) All of the above are true.

20. A donor gave $500,000 to a private college in 2003 with the expressed intent that the funds be used in 2004. In addition, another donor gave $20,000 in 2003 for student scholarships. During 2003, $12,000 was expended on scholarships. The amount that should be recognized as contribution revenue in 2003 is:

A) $12,000.

B) $20,000.

C) $512,000.

D) $520,000.

21. The FASB standards apply to:

A) Private sector, not-for-profit hospitals.

B) Governmental health care organizations.

C) Both of the above.

D) Neither of the above.