NOTE: For multiple-choice and true/false questions, simply place your cursor over what you think is the correct answer. (There is no need to click the answer.) For fill-in-the-blank questions place your cursor over the _________.

If you have difficulty answering the following questions, learn more about this topic by reading our Nonprofit Accounting Explanation.

We also have Puzzles for this topic.

1.	A nonprofit's revenues and expenses are reported on its statement of ________________.

2.	The accounting equation of a nonprofit is Assets = Liabilities + ________  ____________.

3.	A nonprofit's assets and liabilities are reported on its statement of ________________  ________________.

4.	The statement of __________  ___________ may be prepared under the direct or indirect method.

5.	The nonprofit's financial statement that reports amounts as of a particular date (or moment in time) is the ________________________________.

6.	The classifications for reporting contributions according to the donors' stipulations are unrestricted, ___________________ restricted, and permanently restricted.

7.	Classifying expenses into program activities and supporting activities is known as the _______________ basis.
functional                       natural

8.	Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the _______________ basis.
functional                       natural

9.	Depreciation expense is reported for a not-for-profit organization's equipment and furniture.	True	False
10.	Assets released from restrictions will involve two classes of net assets.	True	False

11.	An accounting year ending on a date other than December 31 is referred to as a ____________ year.

12.	The two types of restrictions on contributions that are classified as temporarily restricted are purpose and ___________.

13.	A nonprofit's expenses are reported as part of the changes in ___________________ net assets.
unrestricted               temporarily restricted               permanently restricted

14.	Normally the principal portion of an endowment will be classified as _________________ net assets.
unrestricted               temporarily restricted               permanently restricted

15.	A nonprofit organization's assets that have been designated by its board of directors for a specific project should be reported on the external financial statements as__________________ net assets.
unrestricted               temporarily restricted               permanently restricted

16.	Contributions received by donors are reported on the statement of activities under the caption __________________.

17.	The Internal Revenue Service Form ________ must be filed annually by nonprofits that have been approved as tax-exempt from federal income taxes.

18.	Which form of financing is allowed for a nonprofit organization?
debt               sale of equity securities               both are allowed

19.	A nonprofit organization has two major classifications of expenses: supporting services expenses and _______________ expenses.

20.

US GAAP requires that the external financial statements of a nonprofit report information by funds.

True

False

21.	Supporting services expenses consist of two broad categories: 1) management and general, and 2) ____________________.

22.	Nonprofits are automatically exempt from federal income taxes.	True	False
23.	It is permissible for a nonprofit to earn a profit.	True	False

24.	Contributions and net assets are restricted by the nonprofit organizations'
board of directors               donors               executive director

25.	The ___________ to the financial statements are an integral part of the financial statements.