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 17.6EP
To determine
Identify the circumstances to claim charitable tax-exempt status.
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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.
The primary objective of government or not for profit organizations like public schools, universities and hospitals are______________
a.
None of the options
b.
Collecting tax from citizens
c.
Minimize the expenditure
d.
Maximise the revenue
Which 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 need
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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- A local citizen gives a not-for-profit entity a cash donation that is restricted for research activities. The money should be recorded in: Choose the correct: a. Unrestricted Net Assets.b. Temporarily Restricted Net Assets.c. Permanently Restricted Net Assets.d. Deferred Revenue.arrow_forwardGovernmental entities have one major advantage over nor-for-profit organizations, what is it? O a. All of the choices are valid reasons The fact that the budget gives them clear guidance The right to collect real estate taxes O b. Oc. O d. Oe. The right to compel resources Backing of the federal governmentarrow_forwardThe City of Kastle purchased a vehicle for the parks department. If the operations of the parks department are financed by general revenues, an asset would be recorded in which journal(s)? General Governmental Fund Activities A) B) Yes No No No No Yes Yes Yes Multiple Choice Choice Aarrow_forward
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- The Oman Museum is a nonprofit organization or government organization? Why? Explain.arrow_forwardA local citizen gives the City of Salem a painting by Picasso to display in city hall. Assume that the city does not choose to report the painting on the government-wide financial statements as a capital asset. Must the city report a revenue for the gift?arrow_forwardA private not-for-profit entity sends a direct mail solicitation for monetary donations. Other information is included with the mailing. Under what conditions can the organization report part of the cost of this mailing as a program service cost rather than as purely a fund-raising cost?arrow_forward
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