1. Which financial statements are required for private not-for-profit organizations?
A. Statement of Financial Position, Statement of Functional Expense, Statement of Cash Flows.
B. Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.
C. Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses.
D. Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.
2. In 2020, a major drug company agreed to give a not-for-profit private college $420,000 to perform testing of a new drug. An advance payment of $335,000 was received in 2020. The college was to receive $1,500 per individual test. In 2020, the college completed 160 tests. How much revenue should the college report for 2020?
3. A skilled carpenter installed a roof on a new administrative building for a private not-for-profit free of charge. The not-for-profit would have had to pay $1,800 for this service if not donated. What entry should the not-for-profit make?
A. No entry is required for this event.
B.
|
Building |
$18,000 |
|
|
Contribution revenue |
$18,000 |
C.
|
Capital Expenditures |
$18,000 |
|
|
Contribution revenue |
$18,000 |
D.
|
Supporting Service expense |
$18,000 |
|
|
Contribution revenue |
$18,000 |
