Advanced Accounting - Chapter 19 Exam Questions and Correct Answers Latest Update 2024 (Already Passed)
Which of the following is an example of volunteer services received by a not-for-profit entity that should be recognized as revenue?
I. Services requiring specialized skills, provided by indi...
Which of the following is an example of volunteer services received by a not-for-profit entity that should
be recognized as revenue?
I. Services requiring specialized skills, provided by individuals with those skills, that otherwise would
have to be purchased.
II. Services of lay faculty at a private university operated by a religious order.
III. Services that create or enhance non-financial assets, regardless of whether or not they require
specialized skills.
A. I only
B. I and III only
C. II and III only
D. I, II, and III - Answers D. I, II, and III
Which of the following recognition and measurement bases best summarizes the usual treatment of
current contributions to private not-for-profit entities in accordance with ASC 958?
Timing of Recognition | Measurement
A) When pledged | Donor's Cost
B) When received | Accrual Value
C) When Received | Donor's Cost
D) When pledged | Face Value - Answers D) When pledged | Face Value
A private, not-for-profit geographic society received cash contributions which were restricted by the
donors for the acquisition of fixed assets. In which section of the statement of cash flows would these
cash contributions be reported?
A. Financing activities
B. Investing activities
C. Operating activities
D. Capital and related financing activities - Answers A. Financing activities
, Gray College, a private not-for-profit institution, received a contribution of $100,000 for faculty
research. The donation was received in 20X1 and $80,000 was spent in 20X1. As a result of these
transactions, Gray College should report on its 20X1 statement of activities a:
A. $100,000 increase in temporarily restricted net assets.
B. $20,000 increase in temporarily restricted net assets.
C. $80,000 increase in temporarily restricted net assets.
D. $100,000 increase in unrestricted net assets. - Answers B. $20,000 increase in temporarily restricted
net assets.
The term "restricted" as used in university accounting refers to a constraint on the use of funds which
has been:
I. internally imposed.
II. externally imposed.
A. I only
B. II only
C. Either I or II
D. Neither I nor II - Answers B. II only
In a university, class cancellation refunds of tuition and fees should be recorded as:
I. a reduction of revenue from tuition and fees.
II. a reduction of accounts receivable.
A. I only
B. II only
C. Either I or II
D. Neither I nor II - Answers A. I only
A private university received $2,640,000 from student tuition and fees for the year 20X6 summer
session. The session began on May 16, 20X6, and ended on July 15, 20X6. The university's fiscal year end
is June 30. According to the AICPA College and University Audit Guide, how should the university report
the $2,640,000 of receipts in its financial statements for the year ended June 30, 20X6?
A. Current revenue of $2,640,000.
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