1. A good measure of if a NPO is a going concern?

a. Are revenues sufficient to cover expenses

b. How many months of operating expenses can be covered

by unrestricted net assets

c. Page 646

2. Incur management and general expenses, how to record on

statements of activities

a. Record under supporting services

b. Page 596

3. Unrealized gains in an investing portfolio of a NPO are…when

recognized (how to report)

a. Other revenue

b. Page 592

4. Where to account for a general liability bond

a. Statement of financial position

5. Govt organization, where to account for interest—capitalize or

expense?

6. Depreciation of general capital assets

a. Reported as part of direct expense of functions and

programs in the govt activities column of govt wide
statement of activities

b. Page 171-172

7. Financial statements of NPO

a. Statement of functional expenses

b. Statement of financial position

c. Statement of activities

d. Statement of cash flows

e. Page 583

8. Principle setting bodies

 a. FASB- For profit business organizations, non govt NPOs

b. GASB- State and local govt organizations, govt NPOs

c. FASAB- Federal government and its agencies and

departments

d. Page 4

9. Principle setting bodies

a. See question 8

10. Purpose of statement for functional expenses- NPO

a. Shows expenses that relate to either the program or

mission of the organization
b. Management and general and fundraising expenses
required to support the program

c. Page 590

11. Capital assets under general fund—where to account

a. Page 170- Chart at the top

12. Characteristics of a NPO

a. Page 580

13. A good measure of whether NPO is efficient in fund raising

efforts is…

a. Are contributions received appropriately higher than the

cost of raising those funds

b. Page 646

14. NPO contributions received and made

a. Page 952-593

15. What is NOT true regarding proprietary funds

a. Page 256

16. Capital leases and governmental funds—equipment

acquired

a. Page 170- chart at top

17. Which would least likely be under an enterprise fund

a. Page 270

18. In which fund would it not be appropriate to record

depreciation

a. Page 171

19. Modified accrual basis of accounting when recognizing

revenue

20. SKIPPED

21. Internal service funds and budgetary accounts

a. Page 259
22. Example of increase in net assets for a NPO that would be
labeled “revenue” instead of “support is”

a. Unrestricted net assets?

b. Page 583

23. GASB has identified which of the following as a cornerstone

of all financial reporting in govt (chech ch 1)

24. Accounting standards for NPO’s require…

a. Page 582

25. Depreciation for enterprise fund

a. Page 270-275

26. Fundraising special events and other direct costs—how to

report

a. Page 594- bottom of page

27. CAFR

28. Someone makes donation to city—various numbers—where

to record

a. Page 591-595, check financial statements

29. Page 646 ratios

30. Journal entry to sell equipment—govt activities journal—

use modified accrual or accrual?
31. Comparisons of budget v. actual revenues and expenses

32. Securities donated to NPO should be recorded as…

a. Page 597-598

33. Contributed service to NPO, what has to be met for it to be

a contribution and expense?

a. Page 594

34. Which is NOT an internal service fund?

a. Page 259

35. Page 646 ratios

36. Someone makes a donation with explicit instructions, how
to record it

a. Page 592--Contributions

37. How to account for capital assets under governmental

funds

a. Page 170-171

38. AICPA statement of position 98-2 (ch 14) how to handle

joint cost for fundraising appeal

a. Page 596

39. Depreciation expense in a NPO should be…

a. Allocated to programs as well as to support function

expenses

b. Page 595

40. Which is true about capital project funds?

a. Page 182

41. A NPO gets money with instructions—how to account if

money is spent correctly

a. Restricted net assets

b. Statement of financial position

c. Page583 or Page 592-593

42. Minimum requirements for general purpose external
financial reporting includes…

43. Municipal solid waste landfill

a. Page 287

44. Which contribution would not be reported as an asset

a. Page 592-593

45. Standard setting bodies

a. See question 8

46. Which uses modified accrual basis

47. When assets …modifies, can modified approach be used in
lieu of depreciation?

48. IRS may impose intermediate sanctions on tax exempt

organization when…

a. Private inurement (advantage) resulting from unreasonable

compensation are penalties assessed when a transaction
confers a substantial benefit on a disqualifies person ( one
with big influence over organization)

b. Page 641

49. Temporary restricted nets assets released from restrictions

when…

a. When restrictions are met—moved to unrestricted net

assets (Increase)

b. Page 583

50. Investments for NPO’s

a. Page 597