Which of the following should be included in the current funds revenue of a

Price: $12.99


These Are Multiple Choices, but too long to list them all so I just post up the questions only.

E19-9

1. Which of the following should be included in the current funds revenue of a not-forprofit
private university?

2. The current funds group of a not-for-profit private university includes which of the
following subgroups?

3. Tuition waivers for which there is no intention of collection from the student should be
classified by a not-for-profit university as Revenue Expenditures

4. Which of the following is utilized for current expenditures by a not-for-profit university?
Unrestricted Restricted

5. In the loan fund of a college or university, each of the following types of loans would be
found except

E19-10

1. Which of the following receipts is properly recorded as unrestricted current funds on the books of a university?

2. The current funds group of a not-for-profit private university includes which of the
following?

3. On January 2, 2008, John Reynolds established a $500,000 trust, the income from which is to be paid to Mansfield University for general operating purposes. The Wyndham National Bank was appointed by Reynolds as trustee of the fund. What journal entry is required on Mansfield’s books?

4. For the fall semester of 2008, Cherry College assessed its students $2,300,000 for tuition and fees. The net amount realized was only $2,100,000 because of the following revenue reductions:

5. During the years ending June 30, 2007 and June 30, 2008, Schafer University conducted
a cancer research project financed by a $2,000,000 gift from an alumnus. This entire
amount was pledged by the donor on July 10, 2006, although he paid only $500,000 at
that date. The gift was restricted to the financing of this particular research project. During the two-year research period, Schafer’s related gift receipts and research expenditures were as follows:

E19-11

1. Cura Foundation, a voluntary health and welfare organization, supported by contributions from the general public, included the following costs in its statement of functional expenses for the year ended December 31, 2009.

2. Community Service Center is a voluntary welfare organization funded by contributions
from the general public. During 2008 unrestricted pledges of $900,000 were received, half of which were payable in 2008 with the other half payable in 2009 for use in 2009. It was estimated that 10% of these pledges would be uncollectible. How much should Community report as net contribution revenue for 2008 with respect to the pledges?

3. Theresa Plato is a social worker on the staff of Community Service Center, a voluntary welfare organization. She earns $30,000 annually for a normal workload of 2,000 hours. During 2008 she contributed an additional 800 hours of her time to Community at no extra charge. How much should Community record in 2008 as contributed service expense?

4. The basis of accounting used by nonprofit organizations is the
(a) Cash basis.
(b) Modified accrual basis.
(c) Accrual basis.
(d) Modified cash basis.

E19-12

1. Which NNOs must record depreciation on exhaustible assets?

2. Which statement relating to VHWOs is most nearly correct?

3. Which of the following funds of a VHWO does not have a counterpart fund in governmental
accounting?

4. A voluntary health and welfare organization received a pledge in 2007 from a donor
specifying that the amount pledged be used in 2009. The donor paid the pledge in cash
in 2008. The pledge should be accounted for as

5. Which of the following should be used in accounting for nonprofit health agencies?
(a) Fund accounting and accrual accounting.
(b) Fund accounting but not accrual accounting.
(c) Accrual accounting but not fund accounting.
(d) Neither accrual accounting nor fund accounting.

E19-13

1. Depreciation should be recognized in the financial statements of

2. Securities donated to a nonbusiness organization should be recorded at the

3. The Charity Services ledger account of a nonprofit hospital is a(an)

4. The restricted groupings recommended for hospitals do not include

E19-14

1. An unrestricted pledge from an annual contributor to a not-for-profit hospital made in December 2007 and paid in cash in March 2008 would generally be credited to

2. A gift to a not-for-profit hospital that is not restricted by the donor should be credited
directly to

3. During the year ended December 31, 2008, Melford Hospital received the following
donations, stated at their respective fair values:

4. On July 1, 2007, Lilydale Hospital’s Board of Trustees designated $200,000 for expansion of outpatient facilities. The $200,000 is expected to be expended in the fiscal year ending June 30, 2010. In Lilydale’s balance sheet at June 30, 2008, this cash should be classified as a $200,000