Question Details

(Solved) True-False Questions about Not-For-Profit Accounting and Reporting: - Determine whether each of the following is true or false, and provide an...


True-False Questions about Not-For-Profit Accounting and Reporting:


  • - Determine whether each of the following is true or false, and provide an explanation for your answer.

- Assume that each organization is a private, not-for-profit entity.

- It is possible that an item need not be reported on the hospital's statements of operations.


1. A statement of functional expenses is required for a musical arts association.

2. Pledges received by a research organization should result in recording revenue net of estimated uncollectible pledges.

3. A college should account for a donor-restricted contribution to support student scholarships for the next three years as contribution revenue in its unrestriced net assets. 

4. A hospital should record an insurance provider's contractual adjustment on a patient bill as an operatin expense for the period in which the services were provided to the patient.

5. A university should account for its governing board's designation of resources for the development of a fine arts academic program as a transfer to a temporarily restricted net asset class.

6. An environmental watch organization received a donor-restricted donation for the purchase of equipment and it properly accounted for the donation when it was received. When it acquired the equipment, the organization should record net assets released from temporarily restricted net assets and an addition to unrestricted net assets. 

7. A hospital that used donated supplies for its patient services during the year should not record the donation because it incurred no cost to obtain the supplies.

8. An organization earned investment income on its endowment fund that is permanently donor restricted for use in a specific organizational program. The investment income should be recorded idirectly into the temporarily restricted net asset class.

9. A hospital has a portfolio of securities that decreased in fair market value during the year. Because the securities were not sold during the year, their change in market value should not be recognized on the hospital's statement of operations.

10. A not-for-profit art museum receives for public display a donation of historical artifacts to care for and preserve. If any item in the collection is ever sold, the museum has agreed to use the proceeds for additional items for the collection. The museum is not required to record the contribution revenue and increase in collection assets. 

11. All of a hospital's building and equipment should be recorded in its restricted building fund. 

12. A local accountant donated significant professional services to a local fraternal organization, which should recognize their values as both a contribution revenue and an operationg expense.

13. A hospital has estimated uncollectibles on patient accounts that should be reported as a reduction of net patient service revenue.

14. A college received a conditional pledge based on the occurence of a future event and should record it at its fair value if the future event is determined to be possible. 

15. A hospital that received a donation restricted for a cancer awareness education program properly recorded it as contribution revenue in the temporarily restricted net asset class to offset the contribution revenue for the program.

16. A voluntary health and welfare organization received a contribution that the donor specified could not be spent until the next year. Because the organization received it in this year, the donation should be recorded as a debit to Cash and a credit to Deferred Revenue in the unrestricted net asset class.

17. Hospitals are required to use fund accounting, that specifies which funds are unrestricted, and which are temporarily restricted, and which are permanently restricted.

18. Hospitals are required to report a performance measure in their statement of operations to separate the operatin income from the nonoperating income.

19. A hospital's building fund transfers resources to the general fund for the purchase of new equipment. The building fund should record this as an expense of the period of the transfer, and the general fund should record this as an income of the period of the transfer.

20. A voluntary health and welfare organization conducted a major fund-raising effort that involved significant expenses. Because they were incurred to obtan contribution revenue, the fund-raising costs should be accounted for as a direct reduction of contribution revenue to obtain the net contribution revenue reported on the organization's statement of activities.

True-False Questions about Not-For-Profit Accounting and Reporting: - Determine whether each of the following is true or false, and provide an
explanation for your answer.
- Assume that each organization is a private, not-for-profit entity.
- It is possible that an item need not be reported on the hospital's statements of
operations.
1. A statement of functional expenses is required for a musical arts association.
2. Pledges received by a research organization should result in recording revenue net of
estimated uncollectible pledges.
3. A college should account for a donor-restricted contribution to support student
scholarships for the next three years as contribution revenue in its unrestriced net
assets.
4. A hospital should record an insurance provider's contractual adjustment on a patient
bill as an operatin expense for the period in which the services were provided to the
patient.
5. A university should account for its governing board's designation of resources for the
development of a fine arts academic program as a transfer to a temporarily restricted
net asset class.
6. An environmental watch organization received a donor-restricted donation for the
purchase of equipment and it properly accounted for the donation when it was received.
When it acquired the equipment, the organization should record net assets released
from temporarily restricted net assets and an addition to unrestricted net assets.
7. A hospital that used donated supplies for its patient services during the year should
not record the donation because it incurred no cost to obtain the supplies.
8. An organization earned investment income on its endowment fund that is
permanently donor restricted for use in a specific organizational program. The
investment income should be recorded idirectly into the temporarily restricted net asset
class.
9. A hospital has a portfolio of securities that decreased in fair market value during the
year. Because the securities were not sold during the year, their change in market value
should not be recognized on the hospital's statement of operations.
10. A not-for-profit art museum receives for public display a donation of historical
artifacts to care for and preserve. If any item in the collection is ever sold, the museum
has agreed to use the proceeds for additional items for the collection. The museum is
not required to record the contribution revenue and increase in collection assets.
11. All of a hospital's building and equipment should be recorded in its restricted
building fund.
12. A local accountant donated significant professional services to a local fraternal
organization, which should recognize their values as both a contribution revenue and an
operationg expense.
13. A hospital has estimated uncollectibles on patient accounts that should be reported
as a reduction of net patient service revenue.
14. A college received a conditional pledge based on the occurence of a future event
and should record it at its fair value if the future event is determined to be possible. 15. A hospital that received a donation restricted for a cancer awareness education
program properly recorded it as contribution revenue in the temporarily restricted net
asset class to offset the contribution revenue for the program.
16. A voluntary health and welfare organization received a contribution that the donor
specified could not be spent until the next year. Because the organization received it in
this year, the donation should be recorded as a debit to Cash and a credit to Deferred
Revenue in the unrestricted net asset class.
17. Hospitals are required to use fund accounting, that specifies which funds are
unrestricted, and which are temporarily restricted, and which are permanently
restricted.
18. Hospitals are required to report a performance measure in their statement of
operations to separate the operatin income from the nonoperating income.
19. A hospital's building fund transfers resources to the general fund for the purchase of
new equipment. The building fund should record this as an expense of the period of the
transfer, and the general fund should record this as an income of the period of the
transfer.
20. A voluntary health and welfare organization conducted a major fund-raising effort
that involved significant expenses. Because they were incurred to obtan contribution
revenue, the fund-raising costs should be accounted for as a direct reduction of
contribution revenue to obtain the net contribution revenue reported on the
organization's statement of activities.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200263448.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now