Statement of Financial Position - CPA Financial Accounting and Reporting (FAR)
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The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
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Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
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Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
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This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
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On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
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Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
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ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
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Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
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ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
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These are part of supporting services rather than program services.
These are part of supporting services rather than program services.
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Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
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Net assets for non for profit entities are classified as with and without donor restrictions.
Net assets for non for profit entities are classified as with and without donor restrictions.
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The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
Tap to reveal answer
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
← Didn't Know|Knew It →
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Tap to reveal answer
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
← Didn't Know|Knew It →
On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
Tap to reveal answer
Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
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ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
Tap to reveal answer
Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
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ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
Tap to reveal answer
These are part of supporting services rather than program services.
These are part of supporting services rather than program services.
← Didn't Know|Knew It →
Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
Tap to reveal answer
Net assets for non for profit entities are classified as with and without donor restrictions.
Net assets for non for profit entities are classified as with and without donor restrictions.
← Didn't Know|Knew It →
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
Tap to reveal answer
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
← Didn't Know|Knew It →
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Tap to reveal answer
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
← Didn't Know|Knew It →
On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
On December 1, Year 1, the Gregory Corporation makes a donation of $100,000 to the Family Services Foundation, a private not-for-profit organization. Gregory requests that Family Services give the money to The Soup Kitchen, another not-for-profit organization, but allows Family Services to give the money to another organization if it seems more appropriate. On December 23, Year 1, Family Services gives the money to The Soup Kitchen. When will each organization recognize the gift as contributed support?
Tap to reveal answer
Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
Family Services recognizes the gift as contribution revenue when the gift is received, because it has the option to choose which organization to give the money to. The Soup Kitchen will also recognize contribution revenue (from Family Services) when it receives its gift.
← Didn't Know|Knew It →
ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
ABC, a nongovernmental non for profit organization, is preparing its year end financial statement. Which of the following statements is required?
Tap to reveal answer
Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
Non for profit corporations are required to produce the following financial statements: Financial position, activities, and cash flows.
← Didn't Know|Knew It →
ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
ABC, a community foundation, incurred management and general expenses during year 1. In ABC's statement of activity for the year end, the management and general expenses should be reported as:
Tap to reveal answer
These are part of supporting services rather than program services.
These are part of supporting services rather than program services.
← Didn't Know|Knew It →
Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
Of the following, which would be included as a part of total net assets in the statement of financial position for a nongovernmental non for profit entity?
Tap to reveal answer
Net assets for non for profit entities are classified as with and without donor restrictions.
Net assets for non for profit entities are classified as with and without donor restrictions.
← Didn't Know|Knew It →
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
The Professional Accountants Group is a private, not-for-profit organization that has 1,000 members. Each member pays $400 per year for their membership and receives benefits with a fair value of $120 as benefits of membership. How should the Professional Accountants Group report the revenue received from its members?
Tap to reveal answer
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
Only the portion of members fees that cover the fair value of benefits received are recorded as dues revenue (1K members x $120 per member). The remainder is recorded as contribution revenue (1K members x the difference of $280 per member).
← Didn't Know|Knew It →
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Homer Company made a gift of $50,000 to a national art museum with the specification that the gift be conveyed to a local art festival. The museum does not have the power to change the beneficiary and Homer did not retain the right to revoke the gift or change the beneficiary. How should the museum report the receipt this gift?
Tap to reveal answer
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
This is reported as a liability to the museum, because the museum is obligated to pay the gift to another beneficiary.
← Didn't Know|Knew It →