Question : 118.A Statement of Functional Expenses required for A) State governments. B) Tax : 1255318

118.A Statement of Functional Expenses is required for

A) State governments.

B) Tax agencies.

C) Voluntary health and welfare organizations.

D) Colleges and universities.

119.Supporting activities as classified in the Statement of Activities, normally include

A)  Management and general.

B)  Fund-raising.

C)  Membership development.

D)  All of the above.

120.In 2014, Susan tells The Art Museum, a private not-for-profit organization, that she has named the museum in her will. When should the organization recognize the contribution revenue?

A)  Only after Susan dies and the will is declared valid.

B)  Ratably over a five year period beginning in 2015.

C)  All in 2014.

D)  When the Museum receives the contribution.

121.When should unconditional pledges be recorded as revenue?

A)  Never.

B)  When money is received.

C)  When the pledge is made.

D)  When full collection is assured.

122.A membership pass to the YMCA (a private not-for-profit organization) includes unlimited rights to all facilities and a health magazine subscription.  Non-members do not possess these rights.  How must the YMCA account for membership dues?

A)  The dues are a non-exchange transaction, so it should report all dues in the year received.

B)  The dues are a non-exchange transaction, so it should report dues on a pro-rata basis determined by the length of the individual memberships.

C)  The dues are an exchange transaction, so it should report all dues in the year received.

D)  The dues are an exchange transaction, so it should report dues on a pro-rata basis determined by the length of the individual memberships.

123.The entry to record the expiration of program restrictions includes which of the following?

A)  Debit Reclassification from Temporarily Restricted Net Assets.

B)  Credit Performance Expense.

C)  Debit Reclassification to Unrestricted Net Assets.

D)  Credit Reclassification from Temporarily Restricted Net Assets.

124.Which of the following is not an example of a donor imposed restriction?

A)  Funds are not to be used until the following year.

B)  Funds must be used on certain programs.

C)  Funds are to be endowed.

D)  All of the above are examples of donor imposed restrictions.

125.Which of the following is a legitimate reason for a private not-for-profit to generate a surplus?

A)  Retiring debt.

B)  Establishing working capital.

C)  Both A & B above.

D)   Neither A nor B above

126.The equity section of Statement of Financial Position for private not-for-profits includes which accounts?

A)  Unrestricted, Temporarily Restricted, Permanently Restricted Net Assets.

B)  Invested in Capital Assets net of related debt, Restricted and Unrestricted net assets.

C)  Unreserved Fund Balance, Reserved Fund Balance.

D)  None of the above.

127.The institution’s governing board decided to create an endowment from contributed funds, this is called a(n) ________ and the funds are unrestricted.

A)  Endowment.

B)  Term endowment.

C)  Quasi-endowment.

D)  None of the above.