Question 1

The equity section of a Not-for-Profit organization’s balance sheet could be divided into up to four sections. List the sections and explain the reason for each.

Question 2

In a formal business failure or restructuring situation a professional is involved. Name the professional in each of three such situations and describe their role.

Question 3

The following are transactions that are independent of each other:

1. Florida University receives a collection of accounting books from a donor.
2. Florida College receives a contribution to buy land and the land is bought in the same period.
3. Florida Area Hospital receives a contribution to buy a building.
4. Volunteers contribute about 300 hours per year to cook meals for the elderly.
5. The estate of a retired Business professor makes a $5,000,000 endowment contribution to Algoma University.

How should the above transactions be accounted for assuming -

1. The organization uses the deferral method for accounting for contributions.

2. The organization uses the restricted fund method for accounting for contributions.

Answer rating: 100% (QA)

1 The balance sheet prepared for a non profit organization is the same as that of normal business or... View the full answer