Download Advanced Accounting Test #3 (Ch. 15, 16, 19, & 20) Exam Questions And Answers and more Exams Advanced Accounting in PDF only on Docsity!
& 20) Exam Questions And Answers
The Governmental Accounting Standards board (GASB) controls the accounting for ( 1 ) and the Financial Accounting Standards Board (FASB) controls the accounting and financial reporting for ( 2 ). - correct answer ✅( 1 ) governmental, not-for-profit entities ( 2 ) nongovernmental, not-for-profit entities ASC 958-205 - correct answer ✅Specifies the financial display standards for PRIVATE, not-for-profit entities. The three major financial statements are
- Statement of financial position,
- Statement of activities, and
- Statement of cash flows. ASC 958-210 - correct answer ✅Separates the net assets into those that are
- Without donor restrictions or
- With donor restrictions
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Net assets WITHOUT donor restrictions - correct answer ✅The part of net assets of a not for profit entity that is not subject to donor-imposed restrictions. Used for general operations "Unrestricted donations" Net assets WITH donor restrictions - correct answer ✅The part of net assets of a not for profit entity that is subject to donor-imposed restrictions. "Restricted donations" Characteristics of NPOs - correct answer ✅- no outside ownership interest
- a mission to provide services to their users, patients, society as a whole, or members but NOT at a profit
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ASC 958 -
correct answer ✅Provides additional guidance specific to not-for- profit entities. It covers several important accounting issues including, but not limited to: (1) depreciation, (2) accounting for investments, (3) accounting for general contributions, (4) accounting for transfers of assets to a not-for-profit organization that raises or holds contributions for others, and (5) mergers and acquisitions of not-for-profit organizations. Contributions are measured at their ( 1 ) and are recognized as ( 2 ).
correct answer ✅( 1 ) Fair value ( 2 ) Revenues or gains in the period pledged A private, not-for-profit entity does not need to recognize contributions of - correct answer ✅works of art, historical treasures, and similar
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assets fi the donated items are added to collections that (1) are held for public exhibition, education, or research, (2) are protected, cared for, and preserved, and (3) have an organizational policy that proceeds the sales of collection items are to be used to acquire other items for collections. Contributions of services are recognized as - correct answer ✅REVENUE with an equivalent amount recorded as an expenditure if the services received create or enhance non financial assessor require specialized skills. Public colleges receive a significant portion of their operating resources from (1). Private, not-for-profit colleges receives most of their resources from (2). - correct answer ✅(1) federal and state government (2) tuition and fees Which set of accounting and reporting guidelines do the following types of hospitals use?
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Separate, not-for-profit hospitals issue four basic financial statements... - correct answer ✅1. The balance sheet
- The statement of operations
- The statement of changes in net assets
- The statement of cash flows board-designated resources - correct answer ✅The board-designated resources account is established within the general fund for such purposes as hospital expansion and debt retirement donor-restricted funds (hospital accounting and reporting) - correct answer ✅All restricted funds account for resources whose use the donor restricts. For financial reporting purposes, a distinction is made between temporarily and permanently restricted funds. The major RESTRICTED funds are...
& 20) Exam Questions And Answers
(hospital accounting and reporting) - correct answer ✅1. specific purpose funds,
- time-restricted funds,
- plant replacement and expansion funds.
