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Which of the following financial statements are required for voluntary health and welfare organizations

Which of the following financial statements are required for voluntary health and welfare organizations?

A)  Income Statement.

B)  Statement of Net Assets.

C)  Statement of Cash Flows.

D)  Budgetary Comparison Schedule.

129.The FASB requires that expenses of voluntary health and welfare organizations be reported according to function. Which of the following are FASB required function categories:

A)  Operating and Nonoperating

B)  Program and Supporting Services.

C)  Operating, Investing and Financing.

D)  Capital and Noncapital Related

130.Investments by private not-for-profit organizations in equity securities should be carried at

A)  Historical cost.

B)  Lower of cost or Market.

C)  Fair Market Value.

D)  None of the above.

131.The three classes of net assets reported for a private not-for-profit organization include all of the following except:

A)  Unrestricted net assets.

B)  Temporarily restricted net assets.

C)  Capital restricted net assets.

D)  Permanently restricted net assets.

132.How is the receipt of an unconditional pledge to contribute to a private not-for-profit organization recorded?

A)  As revenue when pledged.

B)  Not recorded until received.

C)  As unearned revenue when pledged.

D)  None of the above.

133.How does a for-profit organization record contributions made to a private not-for-profit organization?

A)  As an expense when originally pledged.

B)  As a reduction in revenue when pledged.

C)  As an expense when contributed.

D)  As a reduction in revenue when contributed.

134.If a person names a private not-for-profit organization in his or her will, this is considered a(n) ________ and is __________.

A)  Conditional promise to give; not recorded.

B)  Unconditional promise to give; recorded.

C)  Intention to give; recorded.

D)  Intention to give; not recorded.

135.The following treatment is correct with regards to payments that are partially exchange transactions and partially contributions:

A)  Reported only as a exchange transaction.

B)  Reported only as a contributions.

C)  Reported as either an exchange transaction or contribution, depending on management’s judgment.

D)  The two parts should be separately accounted for.

136.Which of the following would not be recognized as contribution revenue by a private not-for-profit organization?

A)A pledge to support an educational program for the next 3 years.

B)A health clinic is paid to perform clinical trials of a new medicine.

C)A gift restricted to purchase equipment.

D)Dues paid in excess of the fair value of benefits received.

137.Which of the following is not correct with respect to mergers under the rules established by FASB Statement No. 164, Not-for-Profit Entities:  Mergers and Acquisitions?

A)If the combination qualifies as a merger, it will be accounted for using the carryover method.

B)Goodwill is recognized on long term assets only

C)Assets and liabilities are transferred from both existing entities to the new entity at book value.

D)The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

138.Which of the following is not correct with respect to acquisitions under the rules established by FASB Statement No. 164, Not-for-Profit Entities:  Mergers and Acquisitions?

A)If the combination qualifies as an acquisition, the not-for-profit may acquire control of a business enterprise or other not-for-profit organization and will be accounted for using the acquisition method.

B)Combinations not meeting the definition of a merger are reported as acquisitions.

C)Assets and liabilities of the acquired entity are recorded at fair value on the books of the not-for-profit

D)Entities that derive their revenues from business-like activities are required to expense the goodwill at the date of acquisition.

Jan 25 2020 View more View Less

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