1. Contributions that are restricted by a donor to a nongovernmental not-for-profit organization are reported as a part of:
a. Permanently restricted net assets
b. Temporarily restricted net assets
c. Unrestricted net assets
d. Either permanently restricted or temporarily restricted net assets, depending on the terms of the restriction
2. Unconditional promises to give are recognized as contribution revenue under GAAP when:
a. The promise is received
b. The related receivable is collected
c. The time or purpose restriction is satisfied
d. The future event that binds the promise occurs
3. Which of the following is not a characteristic of a conditional promise to give?
a. It depends on the occurrence of a specified future and uncertain event to bind the promise.
b. The gift may have to be returned to the donor if the condition is not met.
c. It is recognized as contribution revenue when the conditions are substantially met.
d. It depends on demand by the promises for performance.
4. Contributed long-lived assets that are donor restricted for a certain time period are reported by a nongovernmental not-for-profit entity as:
a. Unrestricted support in unrestricted net assets
b. Restricted support in permanently restricted net assets
c. Restricted support in temporarily restricted net assets
d. Unrestricted support in temporarily restricted net assets
5. Long-lived assets are purchased by a nongovernmental not-for-profit entity with cash that was restricted for that purpose. The assets are reported in temporarily restricted net assets. Depreciation expense is reported in unrestricted net assets.
a. The depreciation expense is incorrectly reported.
b. An amount equal to the depreciation is reclassified from temporarily restricted to unrestricted net assets.
c. An amount equal to the depreciation is reclassified from unrestricted to temporarily restricted net assets.
d. An amount equal to the depreciation is reported as revenues.