Nonprofits use four main financial reporting statements:
balance sheet, income statement, statement of cash flows and statement of functional expenses
. Three of these are similar to common for-profit company statements, with the functional expenses statement being unique.
What financial statements are required for private not for-profit colleges and universities?
Which financial statements are required for non-government, not-for-profit colleges and universities?
Balance sheet, statement of revenues, expenses, and changes in net assets, and statement of changes in net assets.
Which financial statement is are required for a voluntary health and welfare organization that is not required for a private not for-profit hospital I a statement of operations II a statement of functional expenses?
The
Statement of Functional Expense
is required only for voluntary health and welfare organizations. The AICPA Health Care Guide prescribes a separate Statement of Operations and Statement of Changes in Net Assets rather than a Statement of Activities.
Which of the following are the net asset classes required by the FASB for private not for-profit organization?
Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?
Net assets without donor restrictions and net assets with donor restrictions
. The net asset classes required by the FASB are unrestricted, temporarily restricted and permanently restricted.
How is the receipt of an unconditional pledge of support to a private not for-profit organization recorded?
An unconditional pledge of support is properly recorded as
Temporarily Restricted Revenue at the time of the pledge
. Changes in the present value of the receivable resulting from the passage of time is reported as: A) Contribution revenue.
Who are the users of not for profit financial statements?
Not-for-profit organizations that will be affected include
charities, foundations, colleges and universities, health care providers
, religious organizations, trade associations, and cultural institutions, among others.
Which net asset categories are typical for a private university?
Public colleges and universities follow accounting standards established by the GASB and investor-owned colleges follow FASB. Private colleges are required to report residual equity in the following categories: –
Unrestricted Net Position, Restricted Net Position, and Net Investment in Capital Assets
.
Which of the following is not required financial statement for a private voluntary health and welfare organization?
Which one of the following is not a required financial statement for a private voluntary health and welfare organization?
Cash flows from operations
.
Which rule making body is currently setting standards of financial reporting for private not for-profit?
The Financial Accounting Standards Board (FASB)
is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP).
Which rule making body is currently setting standards of financial reporting for private not for-profit universities and for public?
The FASB
establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations. The GASB establishes accounting and financial reporting standards for U.S. state and local governments.
What are the 3 types of net asset restrictions?
Businesses classify net assets in three categories:
unrestricted, temporarily restricted and permanently restricted
.
Where can I find non profit financial statements?
Search for annual reports
on GuideStar or the nonprofit’s website
. All nonprofits with $100K in annual contributions or over $250K in assets are required to file an IRS Form 990. The Form 990 is publicly available and can be found on the organization’s page or on nonprofit databases such as GuideStar.
What is net assets without donor restrictions?
Net assets without donor restrictions – The part of net assets
of a not-for-profit entity that is not subject to donor-imposed restrictions
(donors include other types of contributors, including makers of certain grants).
Why is a private not-for-profit entity more likely to use the direct method?
Monetary, nonmonetary, leveraged Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be? …
The direct method is likely to show a more positive amount of operating activity cash inflows
.
When should a conditional pledge to a nongovernmental not-for-profit organization be recognized as revenue?
A conditional pledge should be recognized as revenue
when the pledge is made
. A Statement of Functional Expenses presents a matrix of expenses classified by function and by object or natural classification. All donated services are recognized as revenue. 0.
When should unconditional pledges be recorded as revenue?
Unconditional pledge.
When a donor commits to a pledge without reservation
, the nonprofit receiving the funds records the pledge as revenue and an account receivable. Conditional pledge. When a donor commits to a pledge, but only when a condition is met, the nonprofit does not record anything.
