Use the information below to answer questions 13 15 On June 30, 2017, a nonprofit entity received a multi year pledge from Lisa Williams Lisa promised to give $10,000 per year for 10 years, starting on June 30, 2018 The nonprofit entity's fiscal year ends on June 30 The nonprofit entity discounted the pledge using a 4 interest rate, and determined that the pledge had a present value of $81,109 as of June 30, 2017 Since the donor did not place any purpose restrictions on the use of the donation, the governing board of the nonprofit decided to use the donation to pay for the annual audit The annual audit fee for fiscal 2018 was $8,000 13 For the year ended June 30, 2017, A there was no effect on unrestricted net assets B temporarily restricted net assets increased $81,109 C A and B D Neither A nor B 14 On June 30, 2018, cash would increase $10,000 and contribution revenue temporarily restricted would increase $10,000 pledges receivable would decrease $6,756 contribution revenue temporarily restricted would increase $3,244 B and C 15 On the statement of activities prepared for the year ended June 30, 2018, which of the following statements is correct A There will be a $10,000 reclassification to unrestricted net assets B There will be a $2,000 increase in unrestricted net assets C A and B D Neither A nor B 16 Which of the following is a characteristic of a contribution A Contributions are voluntary and nonreciprocal B Contributions are unconditional transfers of cash or other assets from donors who restrict how the cash can be spent or how other assets may be used C A and B D Neither A nor B 17 In 2017, a major drug company signed an agreement with a nonprofit health care entity to perform testing of a new drug for $1,200,000 The health care entity received an advance payment of $750,000 in 2017 The health care entity will receive $5,000 per individual test In 2017, the health care entity completed 100 tests How much revenue should the nonprofit health care entity report for 2017 A $500,000 B $750,000 C $1,200,000 D A or B depending on the policy of the nonprofit entity

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Use the information below to answer questions 13-15. On June 30, 2017, a nonprofit entity received a multi-year pledge from Lisa Williams. Lisa promised to

Use the information below to answer questions 13-15.

On June 30, 2017, a nonprofit entity received a multi-year pledge from Lisa Williams.

Lisa promised to give $10,000 per year for 10 years, starting on June 30, 2018. The nonprofit entity's fiscal year ends on June 30. The nonprofit entity discounted the pledge using a 4% interest rate, and determined that the pledge had a present value of $81,109 as of June 30, 2017. Since the donor did not place any purpose restrictions on the use of the donation, the governing board of the nonprofit decided to use the donation to pay for the annual audit. The annual audit fee for fiscal 2018 was $8,000.

13.For the year ended June 30, 2017,

A.there was no effect on unrestricted net assets.

B.temporarily restricted net assets increased $81,109.

C.A and B.

D.Neither A nor B.

14.On June 30, 2018, cash would increase $10,000 and

contribution revenue-temporarily restricted would increase $10,000.
pledges receivable would decrease $6,756.
contribution revenue-temporarily restricted would increase $3,244.
B and C.

15.On the statement of activities prepared for the year ended June 30, 2018, which of

the following statements is correct?

A.There will be a $10,000 reclassification to unrestricted net assets.

B.There will be a $2,000 increase in unrestricted net assets.

C.A and B.

D.Neither A nor B.

16.Which of the following is a characteristic of a contribution?

A.Contributions are voluntary and nonreciprocal.

B.Contributions are unconditional transfers of cash or other assets from donors who restrict how the cash can be spent or how other assets may be used.

C.A and B.

D.Neither A nor B.

17.In 2017, a major drug company signed an agreement with a nonprofit health care entity to perform testing of a new drug for $1,200,000. The health care entity received an advance payment of $750,000 in 2017. The health care entity will receive $5,000 per individual test. In 2017, the health care entity completed 100 tests.How much revenue should the nonprofit health care entity report for 2017?

A.$500,000.

B.$750,000.

C.$1,200,000.

D.A or B depending on the policy of the nonprofit entity.