75. During current year, a voluntary health and wel- fare organization receives $300,000 in unrestricted pledges. Of this amount, $100,000 has been desig- nated by donors for use next year to support opera- tions. If 15% of the unrestricted pledges are expected to be uncollectible, what amount of unrestricted sup- port should the organization recognize in its current- year financial statements? a. $300,000 b. $270,000 c. $200,000 d. $170,000 76. Which of the following assets of a nongovern- mental not-for-profit charitable organization must be depreciated? a. A freezer costing $150,000 for storing food for the soup kitchen. b. Building costs of $500,000 for construction in progress for senior citizen home. c. Land valued at $1 million being used as the site of the new senior citizen home. d. A bulk purchase of $20,000 of linens for its nurs- ing home. 77. A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase a truck. In which section of the organization's statement of cash flows should the transaction be reported? a. In cash inflow and cash outflow from investing activities. b. In cash inflow and cash outflow from financing activities. c. In cash inflow from financing activities and cash outflow from investing activities. d. In cash inflow from operating activities and cash outflow from investing activities. 78. Janna Association, a nongovernmental not-for- profit organization, received a cash gift with the stipulation that the principal be held for at least 20 years. How should the cash gift be recorded? a. A temporarily restricted asset. b. A permanently restricted asset. c. An unrestricted asset. d. A temporary liability. 79. Which of the following not-for-profit entities is required to prepare a statement of functional expense? a. An art museum. b. A shelter for the homeless. c. A private foundation. d. A public golf course.
75. During current year, a voluntary health and wel- fare organization receives $300,000 in unrestricted pledges. Of this amount, $100,000 has been desig- nated by donors for use next year to support opera- tions. If 15% of the unrestricted pledges are expected to be uncollectible, what amount of unrestricted sup- port should the organization recognize in its current- year financial statements? a. $300,000 b. $270,000 c. $200,000 d. $170,000 76. Which of the following assets of a nongovern- mental not-for-profit charitable organization must be depreciated? a. A freezer costing $150,000 for storing food for the soup kitchen. b. Building costs of $500,000 for construction in progress for senior citizen home. c. Land valued at $1 million being used as the site of the new senior citizen home. d. A bulk purchase of $20,000 of linens for its nurs- ing home. 77. A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase a truck. In which section of the organization's statement of cash flows should the transaction be reported? a. In cash inflow and cash outflow from investing activities. b. In cash inflow and cash outflow from financing activities. c. In cash inflow from financing activities and cash outflow from investing activities. d. In cash inflow from operating activities and cash outflow from investing activities. 78. Janna Association, a nongovernmental not-for- profit organization, received a cash gift with the stipulation that the principal be held for at least 20 years. How should the cash gift be recorded? a. A temporarily restricted asset. b. A permanently restricted asset. c. An unrestricted asset. d. A temporary liability. 79. Which of the following not-for-profit entities is required to prepare a statement of functional expense? a. An art museum. b. A shelter for the homeless. c. A private foundation. d. A public golf course.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:75. During current year, a voluntary health and wel-
fare organization receives $300,000 in unrestricted
pledges. Of this amount, $100,000 has been desig-
nated by donors for use next year to support opera-
tions. If 15% of the unrestricted pledges are expected
to be uncollectible, what amount of unrestricted sup-
port should the organization recognize in its current-
year financial statements?
a. $300,000
b. $270,000
c. $200,000
d. $170,000
76. Which of the following assets of a nongovern-
mental not-for-profit charitable organization must be
depreciated?
a. A freezer costing $150,000 for storing food for
the soup kitchen.
b. Building costs of $500,000 for construction in
progress for senior citizen home.
c. Land valued at $1 million being used as the site of
the new senior citizen home.
d. A bulk purchase of $20,000 of linens for its nurs-
ing home.
77. A nongovernmental not-for-profit organization
borrowed $5,000, which it used to purchase a truck.
In which section of the organization's statement of
cash flows should the transaction be reported?
a. In cash inflow and cash outflow from investing
activities.
b. In cash inflow and cash outflow from financing
activities.
c. In cash inflow from financing activities and cash
outflow from investing activities.
d. In cash inflow from operating activities and cash
outflow from investing activities.
78. Janna Association, a nongovernmental not-for-
profit organization, received a cash gift with the
stipulation that the principal be held for at least 20
years. How should the cash gift be recorded?
a. A temporarily restricted asset.
b. A permanently restricted asset.
c. An unrestricted asset.
d. A temporary liability.
79. Which of the following not-for-profit entities is
required to prepare a statement of functional
expense?
a. An art museum.
b. A shelter for the homeless.
c. A private foundation.
d. A public golf course.
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