Please answers the multiple questions.

1. The accounting for non-profit organizations is based on

A) modified accrual accounting.

B) tax basis accounting.

C) cash basis accounting.

D) accrual accounting.

2. The funds used by non-profit organizations might include all of the following except

A) unrestricted fund.

B) temporarily restricted fund.

C) internal service fund.

D) permanently restricted fund.

3. The financial statements for a non-profit organization might include all of the following except

A) Statement of Activities.

B) Statement of Cash Flows.

C) Statement of Comprehensive Income.

D) Statement of Financial Position.

4. Liabilities for a non-profit organization are likely to include all of the following except

A) accounts payable.

B) interest payable.

C) accrued wages payable.

D) income taxes payable.

5. On the Statement of Financial Position, which of the following is true?

A) Assets and Liabilities are reported as totals, and Net Assets are reported by unrestricted and restricted classifications.

B) Assets, Liabilities, and Net Assets are reported by unrestricted and restricted classifications.

C) Liabilities are reported as a total, and Assets and Net Assets are reported by unrestricted and restricted classifications.

D) Assets are reported as a total, and Liabilities and Net Assets are reported by unrestricted and restricted classifications.

6. Non-profit organizations are exempt from income tax under Internal Revenue Code section

A) 501(c)

B) 1040

C) 510(c)

D) 990

7. Which of the following is true regarding non-profit organizations and state and local governments?

A) Revenues are often derived from non-exchange transactions.

B) All of these are true.

C) They are typically not subject to income tax.

D) They utilize elements of fund accounting.

8. In exercising its fiduciary responsibility, the governing body of a non-profit organization will adopt an investment policy that

A) only invests in government securities in order to minimize any risk.

B) seeks to balance risk and return in order to achieve long-term goals.

C) tries to maximize earnings in every year.

D) will be approved without modification by the IRS.

9. The Form 990 tax filing is

A) a short one-page form, given that no income taxes are due.

B) an optional filing for all non-profit organizations.

C) simply a different number of the for-profit Form 1040.

D) an extensive filing that ensures the non-profit is operating in line with its mission and goals.

10. Form 990 includes all of the following except

A) detail on executive compensation and certain other non-officer and independent contractor compensation.

B) a breakdown of expenses by program services, management and general, and fundraising categories.

C) coupons for the next charity fundraising event.

D) reporting of any unrelated business income.