Select the best answer for each of the following multiple-choice items.

1. Super Seniors is a not-for-profit organization that provides services to senior citizens. Super employs a full-time staff of 10 people at an annual cost of $150,000. In addition, two volunteers work as part-time secretaries replacing last year’s full-time secretary who earned $10,000. Services performed by other volunteers for special events had an estimated value of $15,000. These volunteers were employees of local businesses, and they received small-value items for their participation. What amount should Super report for salary and wage expenses related to the above items?

a. $150,000
b. $160,000
c. $165,000
d. $175,000

2. Which of the following types of information would be included in total net assets in the statement of financial position for a not-for-profit organization?

a. total current assets.
b. long-term liabilities.
c. types of individual funds the entity has.
d. unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

3. In the statement of activities of a not-for-profit, depreciation expense should

a. be included as an element of expense.
b. be included as an element of other changes in fund balances.
c. be included as an element of support.
d. not be included.

4. Which of the following is true regarding a not-for-profit organization’s reporting of gains and losses on investments purchased with permanently restricted assets?

a. gains and losses can only be reported net of expenses in the statement of activities.
b. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in unrestricted net assets.
c. gains may not be netted against losses in the statement of activities.
d. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in permanently restricted net assets.

5. The League, a not-for-profit organization, received the following pledges:

All pledges are legally enforceable; however, the League’s experience indicates that 10% of all pledges prove to be uncollectible. What amount should the League report as pledges receivable net of any required allowance account?

a. $135,000
b. $180,000
c. $315,000
d. $350,000