Non Profit Organization accounting
Not what you're looking for?
The following gifts are received in Year One by a not-for-profit organization:
(I.) $2,000 specified by the donor to be used to pay salaries.
(II.) $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
The salaries are paid in Year Two and the conference room furniture is purchased in Year One.
How much should be shown as increases as Temporarily Restricted Net Assets in Year One?
A) $2,000
B) $7,000
C) $12,000
D) $15,000
E) $17,000
How much should be reclassified on the Statement of Activities in Year Two from the Temporarily Restricted column to the Unrestricted column?
A) $2,000.
B) $5,000.
C) $7,000.
D) $10,000.
E) $12,000.
Purchase this Solution
Solution Summary
The solution examines the non profit organization accounting. The statement of activities in year two is determined.
Solution Preview
B) The salaries are paid in the second year and the $5,000 must be held for one year before being spent; they must be temporary net assets for the first year.
C)
These statements include much money you've earned (your revenue) and subtracts how much you've spent (your expenses), resulting in the total of your unrestricted net assets. The statement of activities includes how much money you've earned (your revenue) and subtracts how much you've spent (your ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media