QUESTION 1

According to the FASB Coding, donated materials are generally not recognized as contributions by a non-profit organization.

True

False

QUESTION 2

Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift should be used for a specific purpose by nonprofits, but the total amount can be spent immediately?

Net assets designated by the Board

Net assets permanently restricted.

Endowment assets.

Net assets temporarily restricted.

QUESTION 3

A full annual financial report (CAFR) prepared in accordance with the recommendations of the GASB should include which of the following sections?

Letter of transmission, analysis and discussion of management (MD & A), and financial.

Introductory, financial and statistical.

Introductory, MD&A, and financial.

Letter of transmission, financial and complementary.

QUESTION 4

A nongovernmental tax-exempt organization must complete a Form 990 and send it to the Internal Revenue Service:

Only if they have unrelated business income.

If they are not a religious organization and have gross receipts of $5,000 or more each year.

If they have gross receipts of $1,000 or more each year.

Only if they are a private foundation, not a public charity.

QUESTION 5

Contributions received in an earlier period and restricted by the donor for the construction of a building were reported as increases to "net assets temporarily restricted" in the period received. When the building is built at a later period, a nonprofit organization would report "contributions" for the amount released from the restrictions.

True

False

QUESTION 6

The responsibility for establishing generally accepted accounting principles (GAAP) for non-profit non-governmental organizations rests with the FASB and was established more clearly:

By FASB Coding.

When the FASB was created in 1974.

When the GASB was created in 1984.

In the Declaration of Auditing Standards No. 69 of the AICPA (GAAP Hierarchy).

QUESTION 7

Support services expenses include fundraising and management and general expenses that are not directly attributable to specific programs.

True

False

QUESTION 8

"Excess benefit transactions" are those in which persons who have substantial influence over the not-for-profit organization engage in transactions that result in economic benefits to them that are excessive, such as unreasonable compensation, sale of assets at bargain prices, and lease arrangements.

True

False

QUESTION 9

To be considered a non-governmental nonprofit, an organization must be tax exempt.

True

False

QUESTION 10

The FASB states that donated services must be registered as contributions by a nonprofit organization if they are material and if they meet the recognition criteria.

True

False