ACC 460 Week 4 Exercise 13-14, Multiple Choice Assignment
This Tutorial was purchased 9 times & rated
A by student like you.
This Tutorial contains following Attachments
- ACC 460 Nn Week 4 Exercise 13 14 Multiple Choice Assignment.docx
Complete the multiple choice questions in Exercise 13-14, p. 563:
Click the Assignment Files tab to submit your assignment.
Multiple Choice. Choose the best answer.
1. Which of the following organizations would be considered a nongovernmental not-for-profit organization?
a. An organization that provides shelter for men who have been victims of domestic violence and has been designated as a not-for-profit organization by the IRS. The board of trustees is composed of county commissioners, but in the case of the dissolution of the organization, any remaining funds would be donated to the United Way. Funding for the organization comes entirely from contributions.
b. An organization that provides services to persons who wish to learn English as their second language. The organization is incorporated and is funded by fees charged to the learners. All profits are reinvested in the organization to provide further services. The organization has applied for not-for-profit status with the IRS.
c. An organization classified by the IRS as a not-for-profit organization that employs individuals with disabilities in a workshop where the workers make custom stationery out of recycled goods. The organization receives cash and in-kind contributions as well as the proceeds from the sale of the stationery. The organization's board is composed of local businessmen and women.
d. An organization that provides fund-raising services for other not-for-profit organizations. The organization is funded by fees for its services and was incorporated by the former chairperson of the local United Way organization. The organization distributes 40 percent of its profits to local charities.
2. According to GAAP, all not-for-profit organizations are required to prepare
a. A statement of activities, a statement of functional expense, and a statement of cash flows using accrual accounting.
b. A statement of activities, a balance sheet, and a statement of cash flows using accrual accounting.
c. A statement of financial position, a statement of activities, a statement of cash flows and a statement of functional expenses using accrual accounting.
d. A statement of cash flows, a statement of activities, and a statement of financial position using either cash basis or accrual basis accounting.
3. Jane's Planes is an organization that provides air transportation for critically ill children. A friend of Jane's Planes, Richard Bucks donated a plane to be used over its remaining life solely for transportation of critically ill children. In addition, he donated a substantial amount of investments that were to be used strictly to generate income to help fund the organization's expenses. These donations would be included in the organization's net assets as:
a. Permanently restricted
b. Temporarily restricted
c. Permanently restricted
d. Temporarily restricted o Permanently restricted
o Permanently restricted
o Temporarily restricted
o Temporarily restricted
4. In a local NFP elementary school's statement of cash flows, a contribution restricted for use on a new building project would be reported as:
. A financing activity.
a. A capital and related financing activity.
b. An investing activity.
c. An operating activity.
5. A wealthy donor promised $1 million to the local art museum to expand the size of its building, contingent on the museum obtaining a grant from the State Endowment for the Arts of at least $500,000. Upon completing a signed agreement with the donor, the museum should:
. Record a debit to Contributions Receivable—Temporarily Restricted in the amount of $1,000,000.
a. Record a debit to Contributions Receivable—Temporarily Restricted in the amount of $500,000.
b. Not make a journal entry until the conditions of the agreement have been met.
c. Either a or c are permissible, depending on the museum's established policy.
6. Orlando Perez, president of a local information systems company, volunteered his time to help develop software for Best Friends, a local no-kill pet shelter. The software will allow the organization to track intake, placement, and statistics of animals in its three locations. Without Mr. Perez's assistance, Best Friends would have needed to hire someone to develop this software. Best Friends should record the value of Mr. Perez's time as:
. Program revenue and supporting services expense.
a. Contribution revenue and supporting services expense.
b. Program revenue and program expense.
c. Contribution revenue and a program expense.
7. The Maryville Cultural Center recently conducted a successful talent show in which local talent performed for a nominal prize. The talent show is an ongoing major event and is central to the center's mission. The event raised $4,800 in gross revenue. Expenses related to the event included $1,000 to rent an auditorium, $1,200 to advertise the event, $500 for trophies and other awards for the winner and the runners up, and $100 for printing and mailing tickets. The center believes there was no monetary value received by donors (attendees). To report this event in its statement of activities, the center will report:
. Special event revenue of $4,800 and special event expense of $1,500.
a. Special event revenue of $4,800 and fund-raising expense of $1,300.
b. Special event revenue of $2,300 and fund-raising expense of $1,300.
c. Both a and b are correct.
8. Many not-for-profit organizations attempt to classify fund-raising expenses as program services expenses by making the activities look educational in nature or advocating for the mission of the organization. For such expenses to be reported as program services expenses, they must meet which of the following three criteria:
. Purpose, mission-related, and benefit to the public.
a. Purpose, audience, and content.
b. Purpose, expand donor base, and content.
c. Reasonable, improve financial condition, and benefit to the public.
9. Save Our Beaches, a NFP organization, prepared and distributed a tri-fold flyer to individuals and families at White Sands Beach, a popular beach for both residents and tourists. The flyer provided information about beach pollution and invited the public to participate in the organization's semi-annual beach cleanup. In addition, one segment of the flyer solicited contributions to the organization to help fund its activities. The cost of the flyer and its distribution would be considered:
. A fund-raising cost.
a. A program cost.
b. Both a fund-raising and program cost.
c. A management and general expense.
10. A particular organization functions as an intermediary between donors and other beneficiary organizations. The intermediary organization must report contribution revenue from donors if:
. The organization has variance power.
a. The organization elects to consistently report such donor gifts as contribution revenue.
b. The beneficiary organization requests a delay in receiving the contribution from the intermediary organization.
c. All of the above are correct.