F8 M1 NOT-FOR-PROFIT FINANCIAL REPORTING ACTUAL EXAM/
MOSTLY TESTED QUESTIONS AND CORRECT DETAILED ANSWERS|
100% CORRECT SOLUTIONS/GRADE A+
Which of the following financial statements
would provide information about the
ongoing revenues and expenses
associated with a voluntary health and
welfare organization? A. The statement of activities.
A. The statement of activities.
B. The statement of cash flows.
C. The statement of functional expenses.
D. The statement of financial position.
What is a primary purpose and focus of the
statement of activities for a 2 To demonstrate how the organization's
nongovernmental, not-for-profit resources are used in providing various
organization? programs and services
1 To demonstrate the ability of the
,organization to meet donor-imposed
restrictions on resources
2 To demonstrate how the organization's
resources are used in providing various
programs and services
Guidance included in FASB ASC 958,
Financial Statements of Not-for-Profit
Organizations, focuses on:
a. Basic information for the organization as
a whole.
a. Basic information for the organization as
b. Distinctions between current fund and
a whole.
non-current fund presentations.
c. Standardization of funds nomenclature.
d. Inherent differences of not-for-profit
organizations that impact reporting
presentations.
A nongovernmental not-for-profit
organization may report on which of the
following basis and remain in compliance
with generally accepted accounting B) Accrual.
principles (GAAP)?
A) Cash.
B) Accrual.
,C) Modified cash.
D) Modified accrual.
Financial statements prepared by a
voluntary health and welfare
nongovernmental not-for-profit
organization must report expenses by the
following classification(s): Functional -- Natural
Functional -- Natural A.Yes ----------Yes
A.Yes ----------Yes
B.Yes -----------No
C.No -----------Yes
D.No -----------No
Pharm, a nongovernmental not-for-profit
entity, is preparing its year-end financial
statements. Which of the following
statements is required?
B. Statement of cash flows.
A.Statement of changes in fiduciary net
position.
B.Statement of cash flows.
, C.Statement of revenues, expenses, and
changes in fund net position.
D.Statement of revenues, expenditures,
and changes in fund balances.
A statement of activities prepared by a
nongovernmental not-for-profit
organization is most similar to which of the
following financial statements prepared b
We have an expert-written solution to ya for-profit entity?
this problem! A) Income Statement.
B) Balance Sheet.
C) Statement of cash flows.
D) Statement of changes in stockholder's
equity.
Arkin Corp. is a nongovernmental not-for-
profit organization involved in research.
Arkin's statement of functional expenses
should classify which of the following as
A) Income Statement.
support services?
A. Costs of laboratory supplies used in
research.
B. Costs of equipment involved in
MOSTLY TESTED QUESTIONS AND CORRECT DETAILED ANSWERS|
100% CORRECT SOLUTIONS/GRADE A+
Which of the following financial statements
would provide information about the
ongoing revenues and expenses
associated with a voluntary health and
welfare organization? A. The statement of activities.
A. The statement of activities.
B. The statement of cash flows.
C. The statement of functional expenses.
D. The statement of financial position.
What is a primary purpose and focus of the
statement of activities for a 2 To demonstrate how the organization's
nongovernmental, not-for-profit resources are used in providing various
organization? programs and services
1 To demonstrate the ability of the
,organization to meet donor-imposed
restrictions on resources
2 To demonstrate how the organization's
resources are used in providing various
programs and services
Guidance included in FASB ASC 958,
Financial Statements of Not-for-Profit
Organizations, focuses on:
a. Basic information for the organization as
a whole.
a. Basic information for the organization as
b. Distinctions between current fund and
a whole.
non-current fund presentations.
c. Standardization of funds nomenclature.
d. Inherent differences of not-for-profit
organizations that impact reporting
presentations.
A nongovernmental not-for-profit
organization may report on which of the
following basis and remain in compliance
with generally accepted accounting B) Accrual.
principles (GAAP)?
A) Cash.
B) Accrual.
,C) Modified cash.
D) Modified accrual.
Financial statements prepared by a
voluntary health and welfare
nongovernmental not-for-profit
organization must report expenses by the
following classification(s): Functional -- Natural
Functional -- Natural A.Yes ----------Yes
A.Yes ----------Yes
B.Yes -----------No
C.No -----------Yes
D.No -----------No
Pharm, a nongovernmental not-for-profit
entity, is preparing its year-end financial
statements. Which of the following
statements is required?
B. Statement of cash flows.
A.Statement of changes in fiduciary net
position.
B.Statement of cash flows.
, C.Statement of revenues, expenses, and
changes in fund net position.
D.Statement of revenues, expenditures,
and changes in fund balances.
A statement of activities prepared by a
nongovernmental not-for-profit
organization is most similar to which of the
following financial statements prepared b
We have an expert-written solution to ya for-profit entity?
this problem! A) Income Statement.
B) Balance Sheet.
C) Statement of cash flows.
D) Statement of changes in stockholder's
equity.
Arkin Corp. is a nongovernmental not-for-
profit organization involved in research.
Arkin's statement of functional expenses
should classify which of the following as
A) Income Statement.
support services?
A. Costs of laboratory supplies used in
research.
B. Costs of equipment involved in
