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 using 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.
8.
Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the _______________ basis.
9.
Depreciation expense is reported for a not-for-profit organization's equipment and furniture.
10.
Assets released from donor restrictions will involve two classes of net assets.
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.
14.
Normally the principal portion of an endowment will be classified as net assets __________ donor restrictions.
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.
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?
Issuing Equity Securities
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.
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.
23.
It is permissible for a nonprofit to earn a profit.
24.
Contributions and net assets are restricted by the nonprofit organization's .
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.
