Question

Answer the following multiple-choice questions:
Required
a. Which of the following is not true?
1. SFAS No. 93 requires not-for-profit organizations to recognize depreciation on long-lived tangible assets.
2. Under SFAS No. 116, ‘‘Accounting for Contributions Received and Contributions Made,’’ contributions are to be segregated into permanent restrictions, temporary restrictions, and unrestricted support imposed by donors.
3. Prior to SFAS No. 117, ‘‘Financial Statements of Not-for-Profit Organizations,’’ there were significant differences in the financial reports of not-for-profit organizations.
4. Not-for-profit organizations are to present two aggregated financial statements.
5. According to SFAS No. 124, ‘‘Accounting for Certain Investments Held by Not-for-Profit Organizations,’’ equity securities should be shown at their fair values in the statement of financial position.
b. Which of the following is an example of a profit institution?
1. Bank
2. State government
3. Church
4. University
5. None of the above
c. Which of the following is not true?
1. SOP 94-2 concludes that not-for-profit organizations should follow the guidance in effective provisions of GAAP, unless the specific pronouncement explicitly exempts not-for-profit organizations or their subject matter precludes such applicability.
2. Not-for-profit organizations account for a substantial portion of economic activity in the
United States.
3. Prior to SOP 94-2, not-for-profit accounting principles were derived solely from AICPA audit guides.
4. Under SFAS No. 116, ‘‘Accounting for Contributions Received and Contributions Made,’’ contributions received are to be recognized as revenues or gains in the period received.
5. For a not-for-profit organization, the statement of activities should show realized or unrealized gains and losses.
d. Which of the following is not true?
1. The accounting for a not-for-profit institution does not include an entity concept or efficiency.
2. The accounting for a not-for-profit institution has a bottom-line net income.
3. Some not-for-profit institutions have added budgeting by objectives and/or productivity to their financial reporting to incorporate measures of efficiency.
4. Budgeting by objectives and/or measures of productivity could be added to the financial reporting of any not-for-profit institution.
5. Accounting for not-for-profit institutions differs greatly from accounting for a profit-oriented enterprise.



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  • CreatedJune 23, 2012
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