Select the best answer for each of the following items:
1. Cura Foundation, a voluntary health and welfare organization, supported by contributions from the general public, included the following costs in its statement of functional expenses for the year ended December 31, 2026.

2. Cura’s functional expenses for 2026 program services included
(a) $900,000.
(b) $500,000.
(c) $300,000.
(d) $100,000.

3. Community Service Center is a voluntary welfare organization funded by contributions from the general public. During 2025, unrestricted pledges of $900,000 were received, half of which were payable in 2025 with the other half payable in 2026 for use in 2026. It was estimated that 10% of these pledges would be uncollectible. How much should Community report as net contribution revenue for 2025 with respect to the pledges?
(a) $0.
(b) $405,000.
(c) $810,000.
(d) $900,000.

4. Theresa Plato is a social worker on the staff of Community Service Center, a voluntary wel- fare organization. She earns $30,000 annually for a normal workload of 2,000 hours. During 2025, she contributed an additional 800 hours of her time to Community at no extra charge. How much should Community record in 2025 as contributed service expense?
(a) $12,000.
(b) $6,000.
(c) $1,200.
(d) $0.

5. The basis of accounting used by nonprofit organizations is the
(a) Cash basis.
(b) Modified accrual basis.
(c) Accrual basis.
(d) Modified cash basis.

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Fund raising Administrative Research $500,000 300,000 100,000