Nonreciprocal Transfers - CPA Financial Accounting and Reporting (FAR)
Card 1 of 24
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
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While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
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Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
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The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
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A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
Tap to reveal answer
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
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On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
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While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
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A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
Tap to reveal answer
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
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Expenses for a nongovernmental non for profit organization can be classified as:
Expenses for a nongovernmental non for profit organization can be classified as:
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Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
← Didn't Know|Knew It →
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
Tap to reveal answer
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
← Didn't Know|Knew It →
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Tap to reveal answer
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
← Didn't Know|Knew It →
A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
Tap to reveal answer
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
← Didn't Know|Knew It →
On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
Tap to reveal answer
While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
← Didn't Know|Knew It →
A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
Tap to reveal answer
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
← Didn't Know|Knew It →
Expenses for a nongovernmental non for profit organization can be classified as:
Expenses for a nongovernmental non for profit organization can be classified as:
Tap to reveal answer
Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
← Didn't Know|Knew It →
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
Tap to reveal answer
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
← Didn't Know|Knew It →
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Tap to reveal answer
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
← Didn't Know|Knew It →
A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
A private, not-for-profit organization receives a gift of a sculpture worth $1.5 million on the date of the gift. The sculpture qualifies as a work of art or historical treasure. Which of the following is not a requirement that must be met before the sculpture can be omitted as an asset for reporting purposes?
Tap to reveal answer
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
In order to exclude an asset in its reporting, the organization must be holding the asset for public exhibition, education, or research; must protect and preserve the asset; and musts using any sale proceeds to acquire a new collection item. While many of these such assets do have an extraordinary life, it is not a requirement for this type of reporting.
← Didn't Know|Knew It →
On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
On a not for profit entity's statement of activities, which of the following amounts should not be netted together under any circumstances?
Tap to reveal answer
While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
While peripheral or incidental events may be presented on a net basis, major fundraising campaigns will present revenues and expenses separately.
← Didn't Know|Knew It →
A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
A man donated securities with a cost of $20,000 and a fair market value of $50,000 to a local theatre. His tax deduction was limited to $30,000. At what amount should the theatre record the securities at the date of donation?
Tap to reveal answer
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
Donated securities are recorded at $50,000 the fair value when received. Contributions are measured at their fair value at the time of the gif, the securities are measured at fair value.
← Didn't Know|Knew It →
Expenses for a nongovernmental non for profit organization can be classified as:
Expenses for a nongovernmental non for profit organization can be classified as:
Tap to reveal answer
Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
Functional classifications can be allocated by program and support services while natural classifications are aligned to account such as salary, supplies, etc.
← Didn't Know|Knew It →
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
The New York Museum of Art is a private, not-for-profit organization. It receives a gift of a painting worth $1 million on the date of the gift, which qualifies as a work of art or historical treasure. How will this donation be recorded by the museum?
Tap to reveal answer
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
While ordinary donations are recorded as assets and revenue at fair value at the time of the donation, items that qualify as artworks or historical treasures are treated differently. The organization can choose to report them as they would any other asset, or not report them at all, since these assets typically don't provide future economic benefits.
← Didn't Know|Knew It →
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Which of the following statements is not required to be prepared by a private, not-for-profit organization?
Tap to reveal answer
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
The required statements for non-profit organizations included the statement of financial position, the statement of activities and changes in net assets, and the statement of cash flows. There is no such thing as the statement of unrestricted net assets.
← Didn't Know|Knew It →