Question : 98.A private not-for-profit organization received a gift of $460,000 with : 1255316

98.A private not-for-profit organization received a gift of $460,000 with purpose restrictions in 2013.  In 2014 funds were expended for the purpose outlined in the gift, however, it was not possible to determine whether the restricted funds or unrestricted funds were used.  The presumption should be:

A)The restricted funds would have been used first.

B)The unrestricted funds would have been used first.

C)The restricted funds and unrestricted funds would have been used equally.

D)The restricted funds and unrestricted funds would have been used, based on a weighted average of the amounts.

99.Which of the following pledges of support would not be recognized in the year the pledge was made?

A) An unconditional pledge restricted to a particular year in the future.

B)An unconditional pledge restricted to a particular purpose.

C)A pledge with no restrictions, but conditional on receiving matching pledges.

D)None of the above – all would be recognized.

100.              Under FASB Statement 117, reclassifications of net assets are not made:

A)For satisfaction of time restrictions.

B)For satisfaction of program restrictions.

C)For satisfaction of fixed asset acquisition.

D)For permanently restricted net assets.

101.              Which of the following is true of a Statement of Cash Flows for a private sector, private not-for-profit organization?

A)Four categories are used:  Operating, Capital Related Financing, Non-capital Related Financing, and Investing.

B)If the direct method is used, the not-for-profit must also present a reconciliation between total change in net assets and cash flows from operating activities.

C)Cash flows must be presented separately for Unrestricted, Temporarily Restricted, and Permanently Restricted categories.

D)None of the above; all are true.

102.              Which of the following is not true of a Statement of Activities prepared for a private not-for-profit organization?

A)Expenses are shown only as decreases in unrestricted net assets.

B)Reclassifications for expiration of time restrictions are shown in the revenues and support section.

C)Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets.

D)Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

103.              The Statement of Functional Expenses:

A)  Is no longer a required financial statement of any organization.

B)Is required of all private not-for-profit organizations.

C)Is required of all private colleges but not public colleges.

D)Is required of voluntary health and welfare organizations.

104.              Which of the following is not a condition for recording donated services?

A)The individual providing the service provides an invoice detailing the hours contributed but waives the requirement for payment.

B)The service requires a specialized skill and the donor possesses those skills.

C)   The service would have been paid for if not donated.

D)The service creates or enhances a non-financial asset.

105.              A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building.  The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue.  When the building is acquired, the organization should:

A)Record the building as permanently restricted.

B)Record the building as temporarily restricted.

C)Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.

D)Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.

106.              In 2014, a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug.  An advance payment of $200,000 was received in 2014.  The college was to receive $1,500 per individual test.  In 2014, the college completed 100 tests.  How much revenue should the college report for 2014?

A)$   300,000

B)$   200,000

C)$   150,000

D)$   100,000

107.              A donor made a pledge in 2013 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2014 for unrestricted use in 2014.  The organization should:

A)Record the pledge receivable and deferred revenue in 2013.

B)Record the pledge as unrestricted revenue in 2013.

C)Record the pledge as temporarily restricted revenue in 2013 and reclassify it to unrestricted in 2014.

D)Record the pledge as temporarily restricted revenue in 2013 and reclassify it to unrestricted in 2014, but only in an amount equivalent to the amount that is spent in 2014.