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.
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 ...
Solution Summary
The solution examines the non profit organization accounting. The statement of activities in year two is determined.
Limitations of Financial Ratio Analysis for Non-Profit Organizations. ... that the accounting rules for nonprofits allow the ... members from the nonprofit sector began ...
... Because nonprofits operate with little contingency ... Center, Inc (a nonprofit organization) as of ... the "Organization") is a non-profit organization established in ...
... got accounting firms that audit nonprofits clamoring for ... at for-profits." And nonprofit trustees want more transparency (Issue #4: Non-profit trustees calling ...
... have only worked in the for-profit sector and ... External funders usually require nonprofits to provide these ... It is increasingly common for nonprofit boards to ...
... The project will help non controlling interest by ... Certain Investments Held by Not-for-Profit Organizations. ... the acquired business or nonprofit activity meets ...
...Nonprofits that have effectively managed their partnerships ...profit partnerships and then non-profits overall operations ... a notable fixture in the nonprofit sector ...
... A) Electronic ordering B) Eliminating non-value-added ... Answer: B) Nonprofit organizations prepare budgets showing their ... Its gross profit percentage is 70 percent ...
...Non-exchange expenditures are the mirror image of non-exchange revenues ... by transferring assets to a recipient organization (a not-for-profit organization or ...
... potential for conflicts surrounding accounting practices go ... Executive Director of a non-profit organization is one of ... small to medium size non-profits have not ...
