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Question 1

what items are in CFI NFP?

Answer 1

• invest’s in PPE
• proceeds from sale of works of art/distr’s for purch’s of art
• proceeds from sale of assets rec’d in prior period whose sale proceeds were restricted to invest in equip

Question 2

what items are in CFF NFP?

Answer 2

• proceeds from issuing bonds, mortgages, notes, and other ST/LT borrowings
• repmt of amt borrowed
• receipts from contr’s restricted for purp. of acq’ing, constr’ing, or improving PPE/other LT-A’s
• receipts from contr’s restricted for purp. of estab’ing or increasing donor-restricted endowment funds

Question 3

what is the calculation for EB A/R?

Answer 3

BB + sales - collections = EB

Question 4

how is the G/L for an ARO liability calc’d?

Answer 4

diff is b/w settlement date and actual settlement cost

Question 5

when are contr’s class’d as rev/gain in NFP?

Answer 5

• rev = if it is part of the ongoing major/central act’s of the NFP
• gain = if trans is incidental to the purp. of the NFP

Question 6

what is the JE for good faith deposits? (can be assoc’ w/ cond’l promises)

Answer 6

Dr: cash (A)
Cr: refundable adv. (L)

Question 7

what are split-int agreements and how are they acc’d for?

Answer 7

• def’n = donor contr’s of trusts/other arrangements in which NFP rec’s ben’s that are shared w/ other ben’s
• accounting =
• meas’d at FV date of acq
• est’d based on PV est’d future distr’s
• displayed as donor-restricted

Question 8

what is the diff. b/w cond’l and uncond’l pledges?

Answer 8

• cond’l = not recorded

- uncond’l = recog’d as w/ or w/o restrictions

Question 9

how are donated svc’s accounted?

Answer 9

• recorded as contr. and exp only if criteria are met:
  (1) enhances a physical asset
  (2) req. specialized skills that would be purch’d by NFP
• use “SOME”:
• S = specialized
• O = otherwise needed
• M = measurable
• E = easily at FV

*JE:
Dr: exp/A
Cr: contr’s - w/o restrictions

Question 10

what are the req’s for not recording donated art?

Answer 10

(1) item is part of collection
(2) protected items
(3) proceeds from art is used to buy more art

Question 11

what is the JE process for pledges w/o donor restriction, but w/ implied time restriction?

Answer 11

1st:
Dr: P/R - w/ restriction
Cr: allow. for DA
Cr: contr’s - w/ restriction

2nd:
Dr: cash- w/ restriction
Cr: P/R - w/ restriction (elim)

3rd:
Dr: satisfaction - w/ restr
Cr: cash - w/ restriction (elim)

4th:
Dr: cash - w/o restriction
Cr: satisfaction - w/o restr

Question 12

what is the JE for pledges w/ and w/o donor restrictions?

Answer 12

*w/ restriction:
Cr: donor-restricted supp

*w/o restriction:
Cr: contr. w/ donor restr’s

Question 13

what is the GR calc. for patient svc rev?

Answer 13

gross patient svc rev
(BDE)
(charitable svc's)
--------------------------
= patient svc rev

Question 14

what is included in “other op rev” for rev’s recog’d in HC Org’s?

Answer 14

• tuition from schools, rev from edu programs
• donated supplies and equip for specific purp. grants
• rev. from aux act’s
  (cafeteria rev), parking fees, gift shop rev, and med transcription fees

Question 15

what are non-op rev and supp G/L’s? (recog’d as w/o restrictions)

Answer 15

• int and div. income from invest act’s
• gifts and bequests, grants
• income from endowments, income from board desig’d funds
• donated svc’s

Question 16

what are the 3 categories of rev. of particular item of income for NFP rev?

Answer 16

(1) patient svc rev
(2) other op rev
(3) nonop rev

Question 17

what is the calc. for edu’l institutions?

Answer 17

assessed student tuition + fees
(refunds/cancellations)
—————————–
= gross rev from tuition and fees (unrestricted NA’s)

Question 18

what is the GR to calc. contr rev?

Answer 18

contr rev = amt contr - FV purch’s given in exch.

Question 19

are cash contr’sand uncond’l pledges recog’d as contr. rev in the year rec’d?

Answer 19

yes, they both are

Question 20

how should multi-year uncond’l pledges rec’d by a NFP be recorded?

Answer 20

P/R valued at PV

Question 21

how is donated property recorded?

Answer 21

record as an increase in assets on statement of fin. pos. and as supp. on statement of act’s measured at FV