Financial Reporting Standards Quiz

Which rule-making body is currently setting standards of financial reporting for private not-for-profit universities and for public (governmental) universities?

• FASB, FASB

• GASB, GASB

• GASB, AICPA

• FASB, GASB

Net assets restricted as to time or purpose should be classified as:

I: Temporarily Restricted

II: Permanently Restriced

• I only

• II only

• Both I and II

• Neither I nor II

A not-for-profit organization received a donation temporarily restricted as to use. The donated amount was later spent in accordance with the restriction. In which category(ies) of net assets should the related revenues and expenses be recognized?

• Unrestricted: ----, Temporarily restricted: Revenues and Expenses

• Unrestricted: Revenues, Temporarily restricted: Expenses

• Unrestricted: Expenses, Temporarily restricted: Revenues

• Unrestricted: Revenues and Expenses, Temporarily restricted: ----

According to FASB 93, "Recognition of Depreciation by Not-For-Profit (NFP) Entities," NFP entities should recognize depreciation: I. on all long-lived tangible assets. II. on all long-lived intangible assets.

• I only

• II only

• Both I and II

• Neither I nor II

The term "restricted" as used in university accounting refers to a constraint on the use of funds which has been: I. internally imposed. II. externally imposed.

• A. I only

• B. II only

• C. Either I or II

• D. Neither I nor II

Tags

CCSS.HSA.CED.A.3

According to Statement of Financial Accounting Standards 117, the statement of financial position of a private university should report the excess of the university's assets over its liabilities as:

• A. fund balance.

• B. unrestricted and restricted fund balance.

• C. retained earnings.

• D. unrestricted, temporarily restricted, and permanently restricted net assets.

Which of the following is an example of volunteer services received by a not-for-profit entity that should be recognized as revenue? I. Services requiring specialized skills, provided by individuals with those skills, that otherwise would have to be purchased. II. Services of lay faculty at a private university operated by a religious order. III. Services that create or enhance non-financial assets, regardless of whether or not they require specialized skills.

• A. I only

• B. I and III only

• C. II and III only

• D. I, II, and III

In a university, class cancellation refunds of tuition and fees should be recorded as: I. a reduction of revenue from tuition and fees. II. a reduction of accounts receivable.

• I only

• II only

• Either I or II

• Neither I nor II

Which of the following recognition and measurement bases best summarizes the usual treatment of current contributions to private not-for-profit entities in accordance with FASB 116?

• Option A

• Option B

• Option C

• Option D

According to FASB 124, not-for-profit entities should report investments in the financial statements at: I. fair market value. II. lower of cost or market.

• I only

• II only

• Either I or II

• Neither I nor II