Multiple Choice Questions
1. How do Geneva's 2013 financial statements report the out-of-pocket operating expenses described in item d. above?
Statement of ActivitiesStatement of Cash Flows
a. $4,250,000 reduction in unrestricted net assets..............$4,250,000 cash for operating activities
b. $4,200,000 reduction in unrestricted net assets............$4,250,000 cash for operating activities
c. $4,200,000 reduction in temporarily restricted net assets...$4,200,000 cash for operating activities
d. $4,250,000 reduction in temporarily restricted net assets..$4,200,000 cash for operating activities
2. On Geneva's 2013 statement of cash flows, a reconciliation of the change in net assets to cash from operating activities requires adding which of the following adjustments to change in net assets?
a. $50,000 change in accounts payable
b. $25,000 contribution of services
c. $850,000 depreciation expense
d. $431,918 promises to contribute
3. Geneva's 2013 statement of activities reports item e. as follows:
a. $25,000 increase in unrestricted net assets (contributions) and $25,000 decrease in unrestricted net assets (expenses)
b. $30,000 increase in unrestricted net assets (contributions) and $30,000 decrease in unrestricted net assets (expenses)
c. $25,000 increase in temporarily restricted net assets (contributions)
d. Not reported
4. Geneva's 2013 statement of activities reports item b. as follows:
a. $431,918 increase in temporarily restricted net assets
b. $431,918 increase in temporarily restricted net assets and $21,596 increase in unrestricted net assets
c. $453,514 increase in temporarily restricted net assets
d. This promise is not reported until the contribution is received
5. Item c. affects Geneva's net assets in 2013 as follows:
a. $500,000 net decrease in-unrestricted net assets, $300,000 net decrease in temporarily restricted net assets.
b. $500,000 net decrease in unrestricted net assets, $500,000 net decrease in unrestricted net assets
c. No change in unrestricted net assets, $200,000 net increase in temporarily restricted net assets
d. No change in unrestricted net assets, $300,000 net decrease in temporarily restricted net assets