ACC308 Exam with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
tax-exempt, not for profit organizations are described using several terms. the abbreviation for a
term that is used in an international context for not for profit nongovernmental organizations is
✔Correct Answer-NGO
which of the following is a true statement about accounting standard-setting bodies?
✔Correct Answer-the FASB and GASB are administratively supported by the financial accounting
foundation; the FASB draws its support from the federal government
the FASB conceptual framework for financial reporting by not for profit entities is tested on
which part of the CPA exam? ✔Correct Answer-FAR
the concept in state and local government financial reporting that describes assessing whether
current year revenues are sufficient to cover current-year operating expenditures is called
✔Correct Answer-inter-period equity
the GASB has the authority to set accounting and financial reporting standards for all of the
following except ✔Correct Answer-federal governmental agencies
HAS AUTHORITY FOR: governmental not for profit entities, public community colleges, state and
local governments
which of the following statements is false with respect to tax exempt organizations? ✔Correct
Answer-a tax exempt entity may engage in an unlimited amount of political campaigning on
behalf of candidates for office
what is true with respect to tax exempt organizations? ✔Correct Answer--in order to qualify
as a tax exempt organization, the organization must first be a separate legal entity, such as a
nonprofit organization
-tax exempt organizations are required to make their annual form 990 available to the public
-a not for profit corporation operated exclusively for the benefit of its members who are
professional public accountants may be granted tax-exempt status from the IRS
you serve on a not for profit organization that is independent of the university. it is exempt from
federal income taxes under the IRC section 501(c)3. the president reports to its members that
the organization must spend all the money that it brings in during the fiscal year because the
organization is nonprofit. which of the following is an accurate response to the presidents
statement? ✔Correct Answer--there is no federal limit on the change in net assets for the
year
, -it is wise for a new nonprofit organization to build up balance in unrestricted net assets as a
'rainy day fund' or reserve for contingencies
-a nonprofit organization must not distribute the excess of revenues over expenses to members
or owners
public disclosure rules require that a tax exempt not for profit organization provide a copy of its
✔Correct Answer-form 990 immediately to any person who comes into the office and requests
it
which of the following statements is true regarding the unrelated business income of exempt
organizations? ✔Correct Answer-an unrelated business does not include any activity where all
the work is performed for the organization by unpaid volunteers
an organization such as habitat for humanity builds houses with cash donations from people in
the community, government grants, and the 'sweat equity' of the low-income people who will
purchase the houses is a public charity, rather than a private foundation because ✔Correct
Answer-it receives support from a broad set of donors and participants in its home building
programs
if the statement of activities for a not for profit organization reports ($10,000) in the net assets
with donor restrictions column and $10,000 in the net assets without donor restrictions column
on the row labeled 'net assets released from restrictions' it indicates that ✔Correct Answer-
$10,000 of expenses this period were for specific purposes indicated by donors
use of fund accounting by not for profit organizations ✔Correct Answer-may be used for
internal budgeting purposes, but is no longer GAAP for financial reporting
a wealthy family made a contribution of stock in its closely held corporation to a local not for
profit food bank with the stipulation that the gift be treated as an endowment in which the
principal is not spent and the investment income earned on the principal is used to purchase
food for distribution to needy families in the area. under GAAP that conforms to FASB's ASU
2016-14 changes (effective for fiscal years starting after december 15, 2017), the journal entry
to record this gift will include ✔Correct Answer-credit to contributions- with donor
restrictions
a public college or university that receives money from the state in the form of an appropriation
reports that on the operating statement as ✔Correct Answer-nonoperating income
the CAFR of a governmental reporting entity should contain a statement of revenues,
expenditures, and changes in fund balance for ✔Correct Answer-governmental funds but not
proprietary funds
Actual Complete Exam |Already Graded A+
tax-exempt, not for profit organizations are described using several terms. the abbreviation for a
term that is used in an international context for not for profit nongovernmental organizations is
✔Correct Answer-NGO
which of the following is a true statement about accounting standard-setting bodies?
✔Correct Answer-the FASB and GASB are administratively supported by the financial accounting
foundation; the FASB draws its support from the federal government
the FASB conceptual framework for financial reporting by not for profit entities is tested on
which part of the CPA exam? ✔Correct Answer-FAR
the concept in state and local government financial reporting that describes assessing whether
current year revenues are sufficient to cover current-year operating expenditures is called
✔Correct Answer-inter-period equity
the GASB has the authority to set accounting and financial reporting standards for all of the
following except ✔Correct Answer-federal governmental agencies
HAS AUTHORITY FOR: governmental not for profit entities, public community colleges, state and
local governments
which of the following statements is false with respect to tax exempt organizations? ✔Correct
Answer-a tax exempt entity may engage in an unlimited amount of political campaigning on
behalf of candidates for office
what is true with respect to tax exempt organizations? ✔Correct Answer--in order to qualify
as a tax exempt organization, the organization must first be a separate legal entity, such as a
nonprofit organization
-tax exempt organizations are required to make their annual form 990 available to the public
-a not for profit corporation operated exclusively for the benefit of its members who are
professional public accountants may be granted tax-exempt status from the IRS
you serve on a not for profit organization that is independent of the university. it is exempt from
federal income taxes under the IRC section 501(c)3. the president reports to its members that
the organization must spend all the money that it brings in during the fiscal year because the
organization is nonprofit. which of the following is an accurate response to the presidents
statement? ✔Correct Answer--there is no federal limit on the change in net assets for the
year
, -it is wise for a new nonprofit organization to build up balance in unrestricted net assets as a
'rainy day fund' or reserve for contingencies
-a nonprofit organization must not distribute the excess of revenues over expenses to members
or owners
public disclosure rules require that a tax exempt not for profit organization provide a copy of its
✔Correct Answer-form 990 immediately to any person who comes into the office and requests
it
which of the following statements is true regarding the unrelated business income of exempt
organizations? ✔Correct Answer-an unrelated business does not include any activity where all
the work is performed for the organization by unpaid volunteers
an organization such as habitat for humanity builds houses with cash donations from people in
the community, government grants, and the 'sweat equity' of the low-income people who will
purchase the houses is a public charity, rather than a private foundation because ✔Correct
Answer-it receives support from a broad set of donors and participants in its home building
programs
if the statement of activities for a not for profit organization reports ($10,000) in the net assets
with donor restrictions column and $10,000 in the net assets without donor restrictions column
on the row labeled 'net assets released from restrictions' it indicates that ✔Correct Answer-
$10,000 of expenses this period were for specific purposes indicated by donors
use of fund accounting by not for profit organizations ✔Correct Answer-may be used for
internal budgeting purposes, but is no longer GAAP for financial reporting
a wealthy family made a contribution of stock in its closely held corporation to a local not for
profit food bank with the stipulation that the gift be treated as an endowment in which the
principal is not spent and the investment income earned on the principal is used to purchase
food for distribution to needy families in the area. under GAAP that conforms to FASB's ASU
2016-14 changes (effective for fiscal years starting after december 15, 2017), the journal entry
to record this gift will include ✔Correct Answer-credit to contributions- with donor
restrictions
a public college or university that receives money from the state in the form of an appropriation
reports that on the operating statement as ✔Correct Answer-nonoperating income
the CAFR of a governmental reporting entity should contain a statement of revenues,
expenditures, and changes in fund balance for ✔Correct Answer-governmental funds but not
proprietary funds
