er the new standards for nonprofit organizations, what nonprofit tions must disc
ID: 2517716 • Letter: E
Question
er the new standards for nonprofit organizations, what nonprofit tions must disclose information about the functional allocation of ex 6. Und expen ses, organiza in either a separate statement or a footnote? a. All nonprofit organizations b. Only voluntary health and welfare organizations c. Only hospitals d. Only colleges and universities 7. nonprofit organization receives a pledge in 20x1 from a donor who specifies that the amo year should contribution revenue be recorded? unt should be spent in 20x3. The donor pays the pledge in 20x2. In what a. 20x1 b. 20x2 c. 20x3 d. The organization may choose between any of the three years 8. Which organization has the authority to establish generally accepted accounting principles for state and local government entities? a. The National Council on Governmental Accounting b. The Governmental Accounting Standards Board c. The Financial Accounting Standards Board d. The Municipal Officers Finance Organization Which of the following funds are classified as proprietary funds? Agency and pension trust funds. Agency and special revenue funds Enterprise and internal service funds. Debt service and capital projects funds. 9. a. b. c. d. 10. _Under the modified accrual basis of accounting, revenue should be recognized when it is: a. measurable and earned. b. available and earned. c. measurable and available. d. received in cash.Explanation / Answer
6.Option A all Non profit organisation has to disclose the information about functional allocation of expenses ie program activities, management and general activities, fund raising and development activities. Also the expense must be classified on natural basis. This must be provided on one location in fainancial statement.
7.The organisation may decide any of three period if the CONDITIONS applied by donor is likely to fulfill completely means there are significant circumstances of it then will record accordingly.
8. The Governmental Accounting standard Board issue guidelines for state and local government entity. It provide GAAPS FOR THEM.
9. The right answer is options c Enterprise and Internal service funds. In government accounting it is a business like fund of a state or local government. An enterprise fund provide goods and services to general public for a fee . And the Internal services fund is for providing goods and services to one department from another department of governmental units on cost reimbursed basis.
10. The revenue are recognised when they are
Option b Measurable and Available
Modified accrual basis is a combination of accrual and cash basis. It mostly applied in governmental accounting.
The availability means when the revenue is available to finance the expenses and measurable means when cash flows can be estimated from revenues.This give a clear view of resources available.
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