88.Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution?
A)At the time when the church was informed of her will.
B)At the time the church receives a written copy of the will.
C)At Lisa’s death.
D)At the date the probate court declares the will valid following her death.
89.Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale. In recording the sale, Care should:
A)Record a gain of $ 5,000.
B)Record “temporarily restricted revenue” of $ 30,000.
C)Both (a) and (b) above.
D)Neither (a) nor (b) above.
90.An unconditional pledge of support is properly recorded as Temporarily Restricted Revenue at the time of the pledge. Changes in the present value of the receivable resulting from the passage of time is reported as:
A)Contribution revenue.
B)Interest income.
C)Program revenue.
D)None of above is correct.
91.Care Foundation is a voluntary health and welfare organization funded by contributions from the general public. In its Statement of Activities, the annual provision for depreciation should:
A)Not be included.
B)Be included as an element of support.
C)Be included as an element of changes in fund balances.
D)Be included as an element of expense.
92.Uptown Church received a donation of marketable equity securities from a church member. In reviewing the financial press, it is determined that the securities had appreciated during the year. At what amount should Uptown report its marketable equity securities in the year-end balance sheet?
A)Market value at the date of receipt.
B)Market value at the balance sheet date.
C)Donor’s cost.
D)The lower of a, b or c.
93.Which of the following factors, if present, would indicate that a transaction is not a contribution?
A)The resource provider received value in exchange.
B)The resource provider entered into the transaction voluntarily.
C)The transfer of assets was unconditional.
D)The organization has discretion in the use of the assets received.
94.A donor made a gift of cash to a private not-for-profit organization in 2014 with an expressed purpose restriction. All the funds were expended in 2014. The organization must:
A)Record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted.
B)Record the gift and expense as unrestricted.
C)Record the gift and expense as temporarily restricted.
D)Use either of the methods described in (a) or (b).
95.Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?
A)To establish working capital.
B)To retire debt.
C)Both (a) and (b) above.
D)None of the above, not-for-profits should not have surpluses.
96.What financial ratio is most commonly used to evaluate charitable organizations?
A)Current assets / current liabilities.
B)Increase in net assets / total assets.
C)Program expenses / total expenses.
D)Total expenses / total revenues.
97.A donor gave equipment valued at $50,000 at the beginning of 2014 to a private not-for-profit organization. The equipment had a 10-year life and depreciation of $5,000 was charged during 2014. At the end of the year, the net assets to be reported in unrestricted net assets related to this equipment would be:
A)$50,000.
B)$45,000.
C)$ 0.
D)Either $45,000 or $0, depending upon the policy of the organization
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more