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1. Not-for-profit health care organization
financial statements include a
a.
Statement of Cash Flows
c.
Statement of Revenues, Expenses, and
Changes in Fund Balance
b.
Statement of Activities
d.
Statement of Budget to Actual
2. Not-for-profit
health care organization financial statements include a
a.
Statement of Net Assets
c.
Statement of Operations
b.
Statement of Activities
d.
Statement of Budget to Actual
3.A not-for-profit health care organization
Statement of Operations displays the
a.
cash balance at the end of the year
c.
net cash used by operating activities
b.
amount of operating income
d.
classified net assets
4. When
the Allowance for Doubtful Accounts is adjusted, the expense is charged to
a.
Charity Care
c.
Doubtful Account Expenses
b.
Provision for Bad Debts
d.
Reservation of Fund Equity
5.Public colleges and universities follow accounting
standards issued by
a.
GASB
c.
AICPA
b.
FASB
d.
NACUBO
6.
GASB Statement No. 35 requires governmental colleges and universities to
a.
follow the GASB Statement No. 34
financial reporting model
c.
use the 1995 AICPA Audits of Colleges
and Universitiesfinancial reporting model
b.
produce a Statement of Operations
d.
only use the modified approach for
infrastructure assets
7. A
college or university is classified as governmental if
a.
the governing board is appointed by the
college president
c.
the governing board is publicly elected
b.
the university pays corporate income
taxes
d.
all of the above
8. The
Coleville Community College can levy taxes, issue tax-exempt debt and the
governing board is publicly elected. The
Coleville Community College is a
a.
private not-for-profit organization
c.
business-type activity
b.
governmental organization
d.
both b and c are correct
9. Governmental
colleges and universities implementing GASB Statements No. 34 and 35 will
a.
no longer use funds
c.
use invested in capital assets net of
related debt, restricted and unrestricted net asset classes
b.
use restricted, unrestricted and
temporarily restricted net asset classes
d.
none of the above
10. Colleges and universities may elect to record
transactions directly into net asset classes rather than
a.
the Statement of Activities
c.
funds
b.
the Statement of Operations
d.
liabilities
11. Governmental
colleges and universities display student financial aid as a(n)
a.
discount
c.
it is not displayed
b.
expense
d.
expenditure
12. A public college provides scholarship
assistance of $8,000,000 to its students.
When the students register for classes the college applies $7,500,000 of
the financial aid to their tuition and fee bills of $10,000,000 and students
receive $500,000 in cash. The amount
that will be recognized as tuition and fee revenue by the college is
a.
$10,000,000
c.
$2,500,000
b.
$2,000,000
d.
$9,500,000
13. A
public university bills $80,000,000 in tuition and fees and provides
$23,000,000 in financial aid. The
university refunds in cash $800,000 of this financial aid directly to students.
What amount will the university report as
tuition and fee revenue?
a.
$80,000,000
c.
$57,000,000
b.
$79,200,000
d.
$57,800,000
14. A
public college has tuition and fee billings of $30,000,000 and provides
$6,000,000 in financial aid to students.
The students apply $5,200,000 of this financial aid to their tuition and
fee bill and take the excess in cash.
What amount is reported as an expense for financial aid?
a.
$6,000,000
c.
$800,000
b.
$5,200,000
d.
$6,800,000
15. A public college and university have tuition
and fee revenue of $18,000,000 for the summer semester that bridges two fiscal
years. Sixty percent of the instruction
takes place in the next fiscal year and the university decides to allocate the
revenue on that basis. The journal entry
to record this transaction in the current fiscal year will include
a.
$10,800,000 in revenue
c.
$10,800,000 in deferred revenue
b.
$18,000,000 in revenue
d.
$7,200,000 in deferred revenue
16. A patron gets a call from the Metropolitan
Opera Society and pledges $1,000 to be used for general operations. The Metropolitan Opera Society will record
a.
Contribution Revenue - Unrestricted
c.
Contribution Revenue - Permanently
Restricted
b.
Contribution Revenue - Temporarily
Restricted
d.
nothing because it is only an oral
pledge
17. The Humane Society conducts a fund-raising
drive by telephone and has total pledges of $55,000 and notes on other possible
donors who were still considering making pledges of $8,000. What amount of contribution revenue will be
recorded?
a.
$55,000
c.
$8,000
b.
$63,000
d.
Zero
18. A
donor makes a pledge to the zoo of $8,000 that will be paid in four
installments of $2,000 each this year.
The first installment of $2,000 is mailed in with the pledge card and
the zoo will record
a.
Contribution Revenue - Temporarily
Restricted of $8,000
c.
Contribution Revenue - Unrestricted of
$2,000
b.
Contribution Revenue - Temporarily
Restricted of $6,000
d.
both b and c
19. A
local charity received a $1,000 pledge that the donor agrees to pay next
year. This is a(n)
a.
unconditional, unrestricted contribution
c.
conditional, unrestricted contribution
b.
unconditional, restricted contribution
d.
conditional, restricted contribution
20. A woman cleans out her attic and takes her
thirty-year old clothes to her local Goodwill store. She estimates she could get $50 for these if
she held a garage sale. The Goodwill
store sorts the clothes and determines they cannot be used or sold and puts
them in the pile that will go to the landfill.
Goodwill should record
a.
a loss equal to amount of the dumping
fee
c.
nothing
b.
a $50 unrestricted contribution
d.
a $50 unrestricted contribution net of
the dumping fee
21. The
League of Women Voters meets once a month in a conference room that is made
available free by a local hotel and spends $25 for coffee and cookies at the
hotel. The normal rental rate for this
room is $150. The League will record
a.
nothing
c.
$125 unrestricted contribution
b.
$150 temporarily restricted contribution
d.
$150 unrestricted contribution
22. A
local corporation provides blankets worth $5,000 during a winter blizzard to be
handed out by the homeless shelter to the needy. The shelter will record
a.
an unrestricted contribution of $5,000
c.
a temporarily restricted contribution of
$5,000
b.
an asset and liability of $5,000 each
d.
none of the above
23. A contributed service may be recognized as
contribution revenue if it is a
a.
service that helps the organization
c.
skill the organization normally
purchases
b.
specialized skill possessed by the
individual
d.
b and c
24. A
Certified Public Accountant provides 100 hours of free audit services to a
local museum that is valued at $50 an hour and also helps out by spending 100
hours helping clean and landscape the grounds.
The museum would record contribution revenue of
a.
$5,000
c.
zero
b.
$10,000
d.
none of the above
25. A
sculpture worth $22,000 is donated to a botanical garden that has an outdoor
sculpture park. The botanical garden has
decided to capitalize their sculpture collection so the donation would be
recorded as a
a.
unrestricted contribution
c.
temporarily restricted contribution
b.
permanently restricted contribution
d.
invested in capital assets net of
related debt
26. A
viewer makes a $100 pledge to the local public broadcasting station and
receives a coffee mug valued at $2 in return.
The station will record contribution revenue in the amount of
a.
$100
c.
$102
b.
$98
d.
zero
27. Supporting services include
a.
fund-raising activities
c.
management and general
b.
membership development
d.
all of the above
28. Not-for-profit organizations record capital
assets in the
a.
capital asset account
c.
depreciation account
b.
property and equipment account
d.
net assets account
29. Not-for-profit
organizations classify net assets as
a.
conditional or unconditional
c.
temporarily restricted, permanently
restricted or unrestricted
b.
restricted or unrestricted
d.
restricted, unrestricted and invested in
capital assets net of related debt
30. Investment
income or net appreciation generated from unrestricted donated assets should be
reported
a.
as a change in unrestricted net assets
c.
as a change in cash
b.
where the donor specified
d.
as a change in contributions
31. FASB
Statement No. 124 requires that losses on investments of a donor-restricted
endowment fund will
a.
reduce temporarily restricted net assets
first
c.
reduce unrestricted net assets first
b.
reduce the endowment
d.
be charged off as an expense
32. The
basic financial statements for a not-for-profit opera society include a
a.
Statement of Activities
c.
Statement of Budget to Actual
b.
Statement of Net Assets
d.
Balance Sheet
33. The
basic financial statements for the American Red Cross include
a.
Statement of Net Assets
c.
Statement of Budget to Actual
b.
Statement of Functional Expenses
d.
all of the above
34. The
Statement of Functional Expenses is only required for
a.
art museums
c.
religious organizations
b.
labor unions
d.
voluntary health and welfare
organizations
35. The
Statement of Financial Position classifies assets, liabilities and net assets
by
a.
fund
c.
unrestricted, temporarily restricted or
permanently restricted
b.
program or supporting service
d.
revenues or expense
36. The
primary government's financial reporting entity includes
a.
organizations for which the primary
government is an issuer of conduit debt
c.
organizations that receive grants from
the primary government
b.
organizations for which the primary
government is financially accountable
d.
organizations that collect taxes for the
primary government
37. Financial
accountability exists if the primary government
a.
collects taxes for the entity but cannot
impose its will on the entity
c.
cannot impose its will on the
organization
b.
appoints a majority of the governing
body and is responsible to fund any deficit incurred by the organization
d.
appoints a majority of the governing
body and collects taxes and issues conduit debt for the entity
38. A
primary government would have a potential financial benefit or burden from
another organization if the primary government can
a.
modify the organization's budget
c.
modify the organization's fees
b.
use the organization's resources
d.
appoint the organization's finance
director
39. Component
units are
a.
all other legally separate governmental
entities that are located within a county
c.
other organizations that should be
included to prevent the financial statements from being misleading
b.
all funds of the primary government
d.
all entities that participate in an external
pool
40. A
component unit is blended if
a.
the primary government can use or access
the organization's resources
c.
the primary government is obligated in
some manner to repay the debt of the organization
b.
the primary government can impose its
will and appoint a majority of the governing board
d.
the governing bodies of the component
unit and the primary government are substantially the same
Solution: Bus 634 Final Exam MCQs