Test

Week 4 Final Exam

Started

8/15/16 6:46 PM

Submitted

8/15/16 8:13 PM

Status

Needs Grading

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Grade not available.  

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1 hour, 26 minutes out of 2 hours and 30 minutes

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Under SFAS No. 116, pledges received by a nongovernment not-for-profit hospital during its building construction fund drive, and restricted for that purpose, would be recognized as an increase in temporarily restricted net assets (support)

A contribution that is restricted by the donor to be held in perpetuity and for which the investment income can be spent at the discretion of a nongovernmental, not-for-profit hospital's governing board, will be reported as an increase to

Patient service revenues and related receivables include charges for charity care services. 

Under current accounting and reporting standards nongovernmental, not-for-profit organizations (NPOs) must utilize the fund accounting structure set forth in the AICPA Audit and Accounting Guide Not-for-Profit Organizations. 

The purpose of the Internal Revenue Service's 2008 revision of the Form 990 is to simplify and shorten the form so that it takes less time for not-for-profit organizations to complete.

The purpose of a performance indicator is to provide an operating measure for not-for-profit health care organizations that is equivalent to income from continuing operations of for-profit health care organizations. 

The unrelated business income tax could be a significant cost and therefore should be of concern to tax-exempt organizations. 

Contributions or grants restricted by an external donor for a particular operating purpose would be reported as increases to restricted fund balances by a public college or university engaged only in business-type activities and as an addition to temporarily restricted net assets by a private college or university.

Revenues and expenses of both public and private colleges and universities are accounted for on the accrual basis.

Other not-for-profit organizations include all except:

Explain when donated materials should be recognized as a contribution and as an expense by a not-for-profit organization. As part of your explanation give and example of EACH.

Your client is a nongovernmental not-for-profit museum that operates a gift shop. Using a specific example, explain the unrelated business income tax to your client and suggest ways to avoid this tax.

The net assets of an internal service fund consist of contributed equity and reserves for assets that will not be converted into cash in the normal operation of the fund

In late June, the Moore Construction Co. submitted a $600,000 progress billing on a construction contract. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should be debited to Construction Expenditures is

At the government-wide level, where are fiduciary funds reported?

The activities of a water utility department, which offers its services to the general public on a user charge basis, should be accounted for in 

The comprehensive annual financial report (CAFR) of a government should contain a statement of revenues, expenses, and changes in net assets for 

The cost of the periodic redecoration of the city mayor's office should be capitalized in the governmental activities accounts. 
 

What amount of the following items should be accounted for in an enterprise fund?

Warehouse equipment used to store supplies for delivery to all city departments and agencies on a cost- reimbursement basis   $350,000

Equipment used for supplying electric power to residents  $2,100,000

Receivables for completed sidewalks to be paid for in installments by affected property owners.  Construction was financed by special assessment bonds for which the town has no liability $1,760,000         

Cash received from federal government, dedicated to highway maintenance, that must be accounted for in a separate fund  $1,640,000

Fiduciary funds are reported   

The Town of Ashland levied property taxes in the amount of $800,000. The town estimates that 1 percent will be uncollectible. The journal entry to record the tax levy will include 
 

Which of the following is not a budgetary account? 
 

Explain the difference between an expenditure and an expense.

Explain in your own words why accountability is the cornerstone of all financial reporting in government.