Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Question
Chapter 13, Problem 17.5EP
To determine
Identify the charity received largely from the private institutions than the public.
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The following questions concern the accounting principles and procedures applicable to a private not-for-profit entity. Write answers to each question.a. What is the difference between revenue and public support?b. What is the significance of the statement of functional expenses?c. What accounting process does a private charity use in connection with donated materials? d. What is the difference in the two types of restricted net assets found in the financial records of a private not-for-profit organization?e. Under what conditions should the entity record donated services?f. What is the proper handling of costs associated with direct mail and other solicitations for money that also contain educational materials?g. A not-for-profit receives a painting. Under what conditions can this painting be judged as a work of art? If it meets the criteria for a work of art, how is the financial reporting of the entity affected?
Which statement below best describes the entities that can accept donations from the public and provide donors with documentation to allow them to claim a tax deduction in respect of their donation?
a.
A local state school.
b.
A private hospital.
c.
Only entities classified as a deductible gift recipient (DGR) as they meet the necessary requirements to be registered by the ATO.
d.
Any not for profit organisation.
Which of the following statements is correct?
Endowments are provided as donations which only allow a not-for-profit organization to invest in.
other not-for-profit organizations only.
Endowments are donations that are received with the provision that it will be invested and only the
investment income may be spent by the organization.
O
Endowments may be restricted and unrestricted funds which must be used in accordance with the
wishes of the contributor and only available during the life of the donor.
Endowments are unrestricted donations which can be used for any purposes that are consistent with
the goals and objectives of the not-for-profit organization.
Chapter 13 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Jan and Dean decided to form a charitable...Ch. 13 - Prob. 17.2EPCh. 13 - Prob. 17.3EPCh. 13 - Prob. 17.4EPCh. 13 - Prob. 17.5EPCh. 13 - Prob. 17.6EPCh. 13 - Prob. 17.7EPCh. 13 - Prob. 17.8EPCh. 13 - Prob. 17.9EPCh. 13 - When a tax-exempt organization dissolves, the...Ch. 13 - Prob. 18EPCh. 13 - Use Illustration 13-4 as a guide in completing...Ch. 13 - Prob. 20EPCh. 13 - Prob. 21EPCh. 13 - Prob. 22EP
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Similar questions
- The following questions concern the accounting principles and procedures applicable to a private not-for-profit entity. Write answers to each question. What is the difference between revenue and public support? What is the significance of the statement of functional expenses? What accounting process does a private charity use in connection with donated materials? What is the difference in the two types of restricted net assets found in the financial records of a private not-for-profit organization? Under what conditions should the entity record donated services? What is the proper handling of costs associated with direct mail and other solicitations for money that also contain educational materials? A not-for-profit receives a painting. Under what conditions can this painting be judged as a work of art? If it meets the criteria for a work of art, how is the financial reporting of the entity affected?arrow_forwardDifferentiate between public support and revenues as sources of assets for private not-for-profit organizations. Whatbenefit is there in accounting for these differently?arrow_forward9) What are the sources of funds received by the Not-for-Profit Organization?arrow_forward
- Under FASB standards, expenses of a not-for-profit organization can only be shown as reductions of net assets without donor restrictions. O True O Falsearrow_forwardAll of the listed features or obligations differentiate a registered charity from a private corporation except one. Which one? Ability to issue donors official tax receipts Required to file Form T3010 Charity can incorporate like a private company Requirement to meet annual spending quotaarrow_forwardWith the exception of one, each of the aforementioned characteristics or duties distinguishes a registered charity from a private corporation. Who is it? Providing donors with legitimate tax receipts Necessary to submit Form T3010 NGOs are able to incorporate like private companies. Obligation to fulfil annual spending quotaarrow_forward
- **Objective Type Question:** Which of the following is a key requirement for compliance with IRS regulations for tax - exempt status? a) Filing quarterly financial reports with the IRS. b) Limiting the organization's charitable activities to a single geographic region. c) Using tax - exempt funds for personal expenses of the organization's directors. d) Meeting the IRS's criteria for operating exclusively for charitable, educational, or other exempt purposes.arrow_forwardWhich of the following characteristics identify a nonprofit as it relates to tax-status? (Choose all that apply.) Select one or more: a. They don't generate profit that gets reinvested into their mission. b. They are governed by a compensated board of directors c. They are primarily funded by membership fees d. They have a mission that is based around serving the public needarrow_forward1. Under the constitution: Prohibition against taxation of non-stock, non-profit [educational] institutions. This exempts from taxes all revenues and assets of non-stock, non-profit educational institutions actually, directly and exclusively used for educational purposes. Exemption from taxes refers to a. RPT b. Income tax c. Donor s tax d. All of the above 2. RPT exemption covers charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques and non-profit cemeteries and all lands, buildings and improvements actually, directly and exclusively used for charitable, religious and educational purposes. Charitable institution refers to a. Church providing free religious advices b. Entities providing goods and services for free c. Both a and b d. None of the above 3. Income Tax is an example of a. Personal tax b. Business tax c. Property tax d. Excise tax e. Indirect tax f. None…arrow_forward
- Define Not-for-Profit organizations. Explain what distinguishes governmental not-for-profit organizations from nongovernmental, not-for-profit organizations. Why is such a distinction necessary? Mention the objectives of financial reporting of not-for-profit organizations?arrow_forwardWhich of the following statements is true?a. All not-for-profit organizations must include a statement of functional expenses.b. Donor-restricted contributions whose restrictions have been met in the reporting period may be reported as unrestricted support.c. Statements should focus on the individual unrestricted and restricted funds of the organization.d. FASB ASC 958-605 contains requirements that are generally more stringent than those relating to for-profit organizations.arrow_forwardThe non-profit institution must satisfy the following requisites to be a qualified donee that is exempt from donor's tax, exceptarrow_forward
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