Nonprofit Accounting Quiz and Test | AccountingCoach
Course Outline
Join PRO

Nonprofit Accounting(Practice Quiz)

Author:
Harold Averkamp, CPA, MBA

For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.

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


1.
A nonprofit's revenues and expenses are reported on its statement of __________ activities.
2.
The accounting equation of a nonprofit is Assets = Liabilities + __________ Net Assets.
3.
A nonprofit's assets and liabilities are reported on its statement of __________ financial position.
4.
The statement of __________ cash flows 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 __________ statement of financial position.
6.
Since 2018, the net asset classifications temporarily restricted and permanently restricted have been combined into a single classification: net assets with donor __________ restrictions.
7.
Classifying expenses into program activities and supporting activities is known as the _______________ basis.

Functional

Right!

Natural

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

Functional

Wrong.

Natural

Right!
9.
Depreciation expense is reported for a not-for-profit organization's equipment and furniture.

True

Right!

False

Wrong.
10.
Assets released from donor restrictions will involve two classes of net assets.

False

Wrong.

True

Right!
11.
An accounting year ending on a date other than December 31 is referred to as a __________ fiscal year.
12.
The FASB Accounting Standards Update to Not-for-Profit Entities requires additional information to be disclosed. This includes the organization's ability to meet its financial __________ obligations.
13.
A nonprofit's expenses are reported as part of the changes in net assets __________ donor restrictions.

With

Wrong.

Without

Right!
14.
Normally the principal portion of an endowment will be classified as net assets __________ donor restrictions.

With

Right!

Without

Wrong.
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 __________ donor restrictions.

With

Wrong.

Without

Right!
16.
Contributions received from donors are reported on the statement of activities under the caption __________ revenues.
17.
The Internal Revenue Service Form __________ 990 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

Right!

Issuing Equity Securities

Wrong.

Both Are Allowed

Wrong.
19.
A nonprofit organization has two major classifications of expenses: supporting services expenses and __________ program expenses.
20.
US GAAP requires that the external financial statements of a nonprofit report information by funds.

True

Wrong.

False

Right!
21.
Supporting services expenses consist of two broad categories: 1) management and general, and 2) __________ fundraising.
22.
Nonprofits are automatically exempt from federal income taxes.

True

Wrong.

False

Right!
23.
It is permissible for a nonprofit to earn a profit.

True

Right!

False

Wrong.
24.
Contributions and net assets are restricted by the nonprofit organization's __________.

Board Of Directors

Wrong.

Executive Director

Wrong.

Donors

Right!
25.
The __________ notes to the financial statements are an integral part of the financial statements and provide important information on the nonprofit's financial restrictions.

Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.

Must-Watch Video

Learn How to Advance Your Accounting and Bookkeeping Career

  • Perform better at your current job
  • Refresh your skills to re-enter the workforce
  • Pass your accounting class
  • Understand your small business finances
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Certificates of
Achievement

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus