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).
Classifying expenses into program activities and supporting activities is known as the _______________ basis.
Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the _______________ basis.
Depreciation expense is reported for a not-for-profit organization's equipment and furniture.
Assets released from donor restrictions will involve two classes of net assets.
A nonprofit's expenses are reported as part of the changes in net assets __________ donor restrictions.
Normally the principal portion of an endowment will be classified as net assets __________ donor restrictions.
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.
Which form of financing is allowed for a nonprofit organization?
US GAAP requires that the external financial statements of a nonprofit report information by funds.
Nonprofits are automatically exempt from federal income taxes.
It is permissible for a nonprofit to earn a profit.
Contributions and net assets are restricted by the nonprofit organization's __________.
Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Click here to learn more.