Chapter 22

Problem I
(1) a Recognized in period received.

(2) b Recognized in period received. Restriction is released when expenses are incurred.

(3) a Recognized in period made.

(4) a Recorded at present value at time promise to give is received.

(5) c Endowment principal cannot be spent. Earnings are unrestricted.

(6) b Recognized in period received. Restriction released either (1) when asset is placed
in service or (2) over its useful life.
(7) f Recognized when conditions are met.

(8) a Recorded at fair value when received.

(9) a Donated services of a skilled nature that would otherwise be purchased.

(10) f Not skilled services. May be footnoted.

(11) b Recognized in period received. Restriction is released when time restriction is

satisfied.

(12) b Recognized in period received. Restriction is released when expenses are incurred.

(13) d Recognized revenue as expenses are incurred for research project.

(14) b Recognized in period received. Restriction is released either (1) when asset is placed
in service or (2) over useful life of asset.

(15) a, b, or f (If collection is displayed to the public or otherwise held for exhibit, the university
is not required to recognize contributions as revenue.)

Problem II
(a) Cash...................................................................................................... 200,000
Revenues—Temporarily Restricted Contributions ................. 200,000

(b) Expenses............................................................................................... 110,000

Cash ............................................................................................... 110,000

Reclassifications Out—Temporarily Restricted—

Satisfaction of Program Restrictions......................................... 110,000
Reclassifications In—Unrestricted—
Satisfaction of Program Restrictions ........................... 110,000

(c) Reclassifications Out—Temporarily Restricted—

Satisfaction of Program Restrictions......................................... 90,000
Reclassifications In—Permanently Restricted—
Satisfaction of Program Restrictions ........................... 90,000
 Permanently Restricted Net Assets—Mandatory
Transfer-Out .................................................................................. 90,000
Due to Endowment Fund .................................................... 90,000

Note to Instructor: The following entry would be made in the endowment fund:

Due from Restricted Current Fund .................................................. 90,000

Permanently Restricted Net Assets—Mandatory
Transfer-In ............................................................................... 90,000

(d) Cash...................................................................................................... 15,000

Revenues—Temporarily Restricted Contributions ................. 15,000

Problem III
(1) (a) Cash ....................................................................................................... 90,000
Revenues—Temporarily Restricted Contributions................... 45,000
Revenues—Permanently Restricted Contributions................. 45,000
Endowment Investments .................................................................... 45,000
Cash................................................................................................. 45,000

(b) Cash ....................................................................................................... 1,686,000

Accounts Receivable ......................................................................... 148,000
Deferred Revenues.............................................................................. 66,000
Revenues—Student Tuition and Fees ........................................ 1,900,000
Cash ....................................................................................................... 158,000
Deferred Revenues ....................................................................... 158,000

(c) Cash ....................................................................................................... 308,000

Allowance for Uncollectible Tuition and Fees ................................ 12,000
Accounts Receivable................................................................... 320,000
Expenses—Institutional Support (Provision for Uncollectible
Tuition and Fees) ........................................................................... 9,000
Allowance for Uncollectible Tuition and Fees .................. 9,000
(d) Cash ....................................................................................................... 6,000
Revenues—Unrestricted Investment Income .......................... 6,000

(e) Cash ....................................................................................................... 75,000

State Appropriations Receivable............................................... 75,000
State Appropriations Receivable ..................................................... 40,000
Revenues—State Government Appropriations ...................... 40,000

(f) Cash ....................................................................................................... 30,000

Revenues—Temporarily Restricted Contributions................... 30,000
(g) Cash ....................................................................................................... 24,000
Investments..................................................................................... 21,000
Revenues—Temporarily Restricted Gain on the Sale of
Investments.............................................................................. 1,100
Revenues—Temporarily Restricted Investment Income ........ 1,900
(h) Expenses—Instruction.......................................................................... 500,000
 Expenses—Research ........................................................................... 400,000
Expenses—Institutional Support......................................................... 100,000
Expenses—Student Aid ....................................................................... 100,000
Expenses—Student Services............................................................... 200,000
Expenses—Operation and Maintenance of Plant ........................ 500,000
Accounts Payable ........................................................................ 60,000
Cash................................................................................................. 1,740,000

(i) Expenses—Research ........................................................................... 13,000

Cash................................................................................................. 13,000
Reclassifications Out—Temporarily Restricted—Satisfaction
of Program Restrictions ................................................................ 13,000
Reclassifications In—Unrestricted—Satisfaction of
Program Restrictions ......................................................... 13,000

(j) Accounts Payable ............................................................................... 40,000

Cash................................................................................................. 40,000

(k) Cash ....................................................................................................... 7,000

Revenues—Temporarily Restricted Endowment Income ...... 7,000

(l) Cash ....................................................................................................... 16,000

Pledges Receivable ............................................................................ 14,000
Revenues—Unrestricted Contributions ..................................... 30,000
Expenses—Institutional Support Provision for Uncollectible
Contributions.................................................................................. 2,000
Allowance for Uncollectible Contributions ....................... 2,000

(2) USJR Private University

Statement of Activities
For Year Ended June 30, 20x9
Temporarily Permanently
Unrestricted Restricted Restricted Total

Changes in net assets:

Revenues and gains:
Tuition and fees................................................. P1,900,000 P1,900,000
Contributions ..................................................... 30,000 P 75,000 P45,000 150,000
Government appropriations, grants, and
contracts....................................................... 40,000 40,000
Endowment income ........................................ 7,000 7,000
Net realized gains on investments ................ 1,100 1,100
Other investment income............................... 6,000 1,900 7,900
Total revenues and gains .......................... P1,976,000 P 85,000 P45,000 P2,106,000
Net assets released from restrictions:
Satisfaction of program restrictions.................... 13,000 (13,000) 0
Total revenues and gains and other support... P1,989,000 P 72,000 P45,000 P2,106,000
Expenses and losses:
Instruction................................................................ P 500,000 P 500,000
Research ................................................................. 413,000 413,000
 Institutional support ............................................... 111,000 111,000
Student aid ............................................................. 100,000 100,000
Operation and maintenance of plant.............. 500,000 500,000
Student services ..................................................... 200,000 200,000
Total expenses and losses ............................... P1,824,000 P 0 P 0 P1,824,000
Increase (decrease) in net assets ...................... P 165,000 P 72,000 P45,000 P 282,000
Net assets at beginning of year ................................ 487,000 40,000 50,000 577,000
Net assets at end of year............................................ P 652,000 P112,000 P95,000 P 859,000

Problem IV
(1) Journal entries:
(a) Cash ....................................................................................................... 20,000,000
Bonds Payable............................................................................... 20,000,000
Cash ....................................................................................................... 5,000,000
Revenues—Temporarily Restricted Contributions................... 5,000,000

(b) Construction in Progress ..................................................................... 7,000,000

Cash................................................................................................. 7,000,000

(c) Expenses—Operation and Maintenance of Plant

(Interest Expense).......................................................................... 800,000
Cash.......................................................................................... 800,000

(d) Building................................................................................................... 25,000,000

Construction in Progress............................................................... 7,000,000
Cash................................................................................................. 16,000,000
Retained Percentage—Liability to Contractor ....................... 2,000,000
Reclassifications Out—Temporarily Restricted—Satisfaction of
Plant Restrictions............................................................................ 5,000,000
Reclassifications In—Unrestricted—Satisfaction of Plant
Restrictions .......................................................................... 5,000,000

(e) Mortgage Payable .............................................................................. 2,000,000

Expenses—Operation and Maintenance of Plant
(Interest Expense).......................................................................... 800,000
Cash.......................................................................................... 2,800,000

(f) Land........................................................................................................ 200,000

Building................................................................................................... 350,000
Mortgage Payable ....................................................................... 90,000
Revenues—Unrestricted Contributions ..................................... 460,000

(g) Contributions Receivable................................................................... 200,000

Revenues—Temporarily Restricted Contributions................... 200,000
Expenses—Institutional Support (Provision for Uncollectible
Contributions) ................................................................................ 20,000
Allowance for Uncollectible Contributions ....................... 20,000

(h) Investments ........................................................................................... 500,000

Revenues—Temporarily Restricted Contributions................... 500,000
 (i) Cash ....................................................................................................... 10,000
Revenues—Temporarily Restricted Investment Income ........ 10,000

(j) Expenses—Operation and Maintenance of Plant

(Depreciation Expense) ............................................................... 25,000
Accumulated Depreciation................................................. 25,000

(2) USLS Private University

Statement of Activities
For Period Ended June 30, 20xx
Temporarily Permanently
Unrestricted Restricted Restricted Total

Changes in net assets:

Revenues and gains:
Contributions ................................................... P 460,000 P 5,700,000 P6,160,000
Other investment earnings ........................... 0 10,000 10,000
Total unrestricted revenues and gains.. P 460,000 P 5,710,000 P 0 P6,170,000
Net assets released from restrictions:
Satisfaction of plant acquisition restrictions ... 5,000,000 (5,000,000)* 0
Total revenues and gains and other support P5,460,000 P 710,000 P 0 P6,170,000
Expenses:
Operations and maintenance of plant .......... P1,625,000 P1,625,000
Institutional support ............................................. 20,000 20,000
Total expenses ................................................ P1,645,000 P 0 P 0 P1,645,000
Increase (decrease) in net assets ......... P3,815,000 P 710,000 P 0 P4,525,000

*Note to Instructor: The reclassification amount would total P25,000 if USLS’s policy is to release
the restrictions over the life of the assets rather than when placed into operation.

Problem V

(1) Closing entries:

Each asset Revenues—Tuition and Fees ...................................................... 1,500,000
class is closed Revenues—Government Appropriations ................................ 800,000
separately. Revenues—Unrestricted Contributions .................................... 265,000
Revenues—Unrestricted Other Investment Income .............. 250,000
Reclassifications In—Unrestricted—Satisfaction of
Program Restrictions ............................................................... 75,000
Reclassifications In—Unrestricted—Satisfaction of Plant
Acquisition Restrictions........................................................... 250,000
Reclassifications In—Unrestricted—Expiration of Time
Restrictions................................................................................ 50,000
Unrestricted Net Assets ............................................................ 305,000
Expenses—Research .............................................................. 840,000
Expenses—Instruction ............................................................. 1,230,000
Expenses—Academic Support............................................. 250,000
Expenses—Student Services.................................................. 200,000
Expenses—Instructional Support .......................................... 225,000
 Expenses—Operation and Maintenance of Plant ........... 400,000
Expenses—Student Aid .......................................................... 350,000

Revenues—Sales and Services of Auxiliary Enterprises500,000

Expenses—Auxiliary
Enterprises............................................................................ 475,000
Unrestricted Net Assets ....................................................... 25,000

Revenues—Temporarily Restricted Contributions .................. 200,000

Revenues—Temporarily Restricted Endowment
Income ...................................................................................... 15,000
Revenues—Temporarily Restricted Net Realized Gains
on Endowment ........................................................................ 25,000
Temporarily Restricted Net Assets .......................................... 135,000
Reclassifications Out—Temporarily Restricted—
Satisfaction of Program Restrictions ............................... 75,000
Reclassifications Out—Temporarily Restricted—
Expiration of Time Restrictions .......................................... 50,000
Reclassifications Out—Temporarily Restricted—
Satisfaction of Equipment Acquisition Restrictions ...... 250,000

Revenues—Permanently Restricted
Contributions............................................................................ 500,000
Permanently Restricted Net Assets ............................... 500,000

(2) University of Cebu

Statement of Activities
For Year Ended December 31, 20x8

Temporarily Permanently
Unrestricted Restricted Restricted Total

Changes in net assets:

Revenues and gains:
Tuition and fees .................................................... P1,500,000 P1,500,000
Contributions......................................................... 265,000 P 200,000 P 500,000 965,000
Government appropriations, grants, and
contracts .......................................................... 800,000 800,000
Investment income on endowment ................ 15,000 15,000
Net realized gains on endowment investments 25,000 25,000
Other investment income ............................. 250,000 250,000
Sales and services of auxiliary enterprises ....... 500,000 500,000
Total revenues and gains .............................. P3,315,000 P 240,000 P 500,000 P4,055,000
Net assets released from restrictions:
Satisfaction of program restrictions ....................... P 75,000 P (75,000) P 0
Satisfaction of equipment acquisition restrictions 250,000 (250,000) 0
Satisfaction of time restrictions ............................... 50,000 (50,000) 0
Total net assets released from restrictions ....... P 375,000 P(375,000) P 0
Total revenues and gains and other support P3,690,000 P(135,000)P 500,000 P4,055,0
Expenses:
 Research ..................................................................... P 840,000 P 840,000
Instruction ................................................................... 1,230,000 1,230,000
Academic support.................................................... 250,000 250,000
Student services......................................................... 200,000 200,000
Institutional support................................................... 225,000 225,000
Operation and maintenance of plant ................. 400,000 400,000
Student aid ................................................................. 350,000 350,000
Auxiliary enterprises................................................... 475,000 475,000
Total expenses ...................................................... P3,970,000 P 0 P 0 P3,970,000
Increase (decrease) in net assets................ P (280,000) P(135,000) P 500,000 P 85,000
Net assets, January 1, 20x8........................................... 675,000 975,000 2,500,000 4,150,000
Net assets, December 31, 20x8.................................. P 395,000 P 840,000 P3,000,000 P4,235,000

Problem VI
University of Cebu
Statement of Financial Position
December 31, 20x8

Assets:
Cash .............................................................................................................................. P 255,000
Accounts receivable ................................................................................................. 625,000
Contributions receivable .......................................................................................... 85,000
Inventory of supplies .................................................................................................. 75,000
Student loans receivable .......................................................................................... 300,000
Land, buildings, and equipment (net) ................................................................... 1,000,000
Endowment investments........................................................................................... 3,025,000
Total assets........................................................................................................ P5,365,000
Liabilities:
Accounts payable ..................................................................................................... P 220,000
Amounts held on behalf of others .......................................................................... 250,000
Long-term debt........................................................................................................... 560,000
U.S. government grants refundable ....................................................................... 100,000
Total liabilities ................................................................................................... P1,130,000
Net assets:
Unrestricted ............................................................................................................. P 395,000
Temporarily restricted ............................................................................................ 840,000
Permanently restricted........................................................................................... 3,000,000
Total net assets ................................................................................................. P4,235,000
Total liabilities and net assets .......................................................................................... P5,365,000

Problem VII
(1) Patient service revenues include charges to patients for routine services, nursing services,
and professional services.

Other operating revenues include revenues from services other than health care provided
to patients as well as from sales and services to persons other than patients.

Nonoperating revenues are primarily from gifts, grants, and investment income and gains
that are peripheral or incidental to the major operation of the hospital.

(2) a. OO d. PS g. OO j. PS
 b. N e. N h. PS k. N
c. PS f. N i. OO

Problem VIII
(1) Accounts Receivable ................................................................................ 1,010,000
Patient Service Revenues................................................................... 1,010,000
To record billings.

(2) Inventory....................................................................................................... 12,000

Other Operating Revenues—Unrestricted (contributions) .......... 12,000
To record donation of drugs from doctor.

(3) Cash .............................................................................................................. 28,800

Other Operating Revenues—Unrestricted...................................... 28,800
To record cash revenues.

(4) Charity Services........................................................................................... 13,000

Accounts Receivable ......................................................................... 13,000
To record charity allowance.

(5) Contractual Adjustments .......................................................................... 68,000

Accounts Receivable ......................................................................... 68,000
To record adjustments for Medicare charges.

(6) Provision for Bad Debts .............................................................................. 26,000

Allowance for Uncollectible Receivables ....................................... 26,000
To record increase in allowance.

Problem IX
(1) Accounts Receivable ................................................................................ 8,500,000
Revenues ............................................................................................... 8,500,000
Contractual Adjustments .......................................................................... 3,700,000
Allowance for Contractual Adjustments......................................... 3,700,000
Cash .............................................................................................................. 4,460,000
Contractual Adjustments .......................................................................... 340,000
Allowance for Contractual Adjustments ............................................... 3,700,000
Accounts Receivable ......................................................................... 8,500,000
Cash .............................................................................................................. 250,000
Contractual Adjustments ................................................................... 250,000
Contractual Adjustments .......................................................................... 90,000
Cash ....................................................................................................... 90,000

(2) Net patient service revenues = P4,620,000 (P8,500,000 – P3,700,000 – P340,000 + P250,000 –
P90,000)

(3) Net cash flow from transactions with Medicare = P4,620,000 (P4,460,000 + P250,000 –
P90,000)
(4) Assuming the P90,000 payment back to Medicare was in settlement, the revenue account
will be closed along with the contra-revenue account “Contractual Adjustments.” The net
amount will appear on the financial statements.

Problem X
Pure Air Rehabilitation Hospital
Statement of Activities
For Period Ended December 31, 20x9
Temporarily Permanently
Unrestricted Restricted Restricted Total
Patient service revenues (net of $26,000
contractual adjustments) .................................... P 714,000 P 714,000
Other operating revenues:
Seminar income .................................................... P 23,000 P 23,000
Child day care income........................................ 15,000 15,000
Parking fees ............................................................ 4,500 4,500
Total other operating revenue ...................... P 42,500 P 42,500
Total operating revenues.......................................... P 756,500 P 756,500
Operating expenses:
Nursing services ..................................................... P 230,000 P 230,000
Professional fees .................................................... 340,000 340,000
General and administrative ................................ 150,000 150,000
Depreciation expense ......................................... 90,000 90,000
Interest expense .................................................... 13,000 13,000
Repairs and maintenance .................................. 110,000 110,000
Provision for uncollectibles .................................. 14,000 14,000
Total operating expenses ............................... P 947,000 P 947,000
Loss from operations .................................................. P(190,500) P (190,500)
Nonoperating revenue:
Interest income...................................................... P 3,000 P 3,000
Contributions .......................................................... P 18,000 18,000
Endowment income ............................................. 120,000 120,000
Gains on sale of endowments............................ 56,000 P 0 56,000
Total nonoperating revenue.......................... P 3,000 P194,000 P 0 P 197,000
Change in net assets ................................................. P(187,500) P194,000 P 0 P 6,500
Net assets, January 1, 20X9 ...................................... 800,000 755,000 750,000 2,305,000
Net assets, December 31, 20X9 ............................... P 612,500 P949,000 P750,000 P2,311,500

Problem XI
Requirement:
1. Prepare statement of activities for the year ended June 30, 20x8.
2. Prepare statement of financial position as of June 30, 20x8

(1) Adventist Hospital

Statement of Activities
For Year Ended June 30, 20x8

TemporarilyPermanently
Unrestricted Restricted Restricted Total
Public support and revenue:
Public support:
Contributions ............................................................... P300,000 P15,000 P315,000
Annual auction proceeds (net of P11,000 expense) 31,000 31,000
Total public support ................................................ P331,000 P15,000 P 0 P346,000
Revenues:
Membership dues....................................................... P 25,000 P 25,000
Program service fees ................................................. 30,000 30,000
Investment income .................................................... 10,000 10,000
Endowment income .................................................. P20,000 20,000
Total revenue ........................................................... P 65,000 P20,000 P 0 P 85,000
Net assets released from restrictions:
Satisfaction of program restrictions ............................ P 5,000 P (5,000) P 0
Total public support, revenue, and other support...... P401,000 P30,000 P 0 P431,000
Expenses:
Program services:
Blind children ............................................................... P150,000 P150,000
Deaf children............................................................... 120,000 120,000
Supporting services:
Management and general ...................................... 51,000* 51,000
Fund raising.................................................................. 9,000 9,000
Total expenses ................................................................... P330,000 P 0 P 0 P330,000
Change in net assets ........................................................ P 71,000 P30,000 P 0 P101,000
Net assets, July 1, 20x7...................................................... 38,000 3,000 250,000 291,000
Net assets, June 30, 20x8 ................................................. P109,000 P33,000 P250,000 P392,000
*P49,000 + P2,000 provision for uncollectible pledges

(2) Adventist Hospital

Statement of Financial Position
June 30, 20x8

Assets:
Cash ....................................................................................................................... P 40,000
Pledges receivable (net of P3,000 allowance) ............................................. 9,000
Bequest receivable ............................................................................................. 5,000
Accrued interest receivable ............................................................................. 1,000
Long-term investments ....................................................................................... 140,000
Endowment investments .................................................................................... 250,000
Total assets ..................................................................................................... P445,000
Liabilities:
Accounts payable and accrued expenses ................................................... P 51,000
Refundable deposits ........................................................................................... 2,000
Total liabilities ................................................................................................. P 53,000
Net assets:
Unrestricted........................................................................................................... P109,000
Temporarily restricted ......................................................................................... 33,000
Permanently restricted ....................................................................................... 250,000
Total net assets .............................................................................................. P392,000
Total liabilities and net assets ................................................................................... P445,000
Multiple Choice Problems
1. c 21. a 41. c 61. b 81. a 101. d 121. c 141. c 161. c
2. a 22. a 42. d 62. c 82. a 102. a 122. a 142. b 162. d
3. c 23. d 43. a 63. d 83. b 103. b 123. c 143. d 163. d
4. a 24. a 44. b 64. b 84. a 104. d 124. c 144. a 164. a
5. b 25. c 45. d 65. a 85. b 105. b 125. c 145. d 165. a
6. a 26. d 46. c 66. c 86. d 106. a 126. c 146. c 166. c
7. c 27. b 47. c 67. b 87. b 107. a 127. c 147. b 167. e
8. d 28. d 48. b 68. c 88. a 108. b 128. a 148. c 168. a
9. c 29. a 49. c 69. d 89. d 109. d 129. c 149. a 169. a
10. d 30. c 50. c 70. c 90. b 110. a 130. b 150. c 170. b
11. b 31. a 51. d 71. b 91. a 111. b 131. b 151. d 171. d
12. a 32. b 52. c 72. c 92. a 112. c 132. c 152. e 172. c
13. b 33. b 53. c 73. b 93. c 113. d 133. b 153. d 173. d
14. c 34. b 54. b 74. a 94. d 114. b 134. a 154. b 174. c
15 b 35 c 55 a 75 b 95 d 115. c 135. d 155. d 175. c
16. d 36. a 56. d 76. a 96. d 116. c 136. a 156. b 176. d
17. b 37. d 57. c 77. b 97. a 117. c 137. c 157. b 177. b
18. b 38. a 58. c 78. c 98. c 118. b 138. d 158. c 178. c
19. c 39. b 59. b 79. c 99. b 119. d 139. b 159. b
20. d 40. a 60. a 80. a 100. b 120. d 140. b 160. a
7. c – P210 x 4 = P840
8. d – term endowment
59. b (Permanently restricted net assets have increased by only P120,000.)
60.
61. b (The financial aid is shown as a direct reduction to the tuition revenue so that revenues and support should total
only P780,000.)
68. c (Amounts charged to patients less contractual adjustments)
69. d (The charity care work should not be recorded in any way because there is no expectation of collection. The
contractual adjustment is reported as a contra balance to the revenue.)
95. d (These services do not meet the criteria for donated services that are recognized.)
155. b (The charity must convey the donation to the designated beneficiary. Unless the charity was given varied powers
that allowed it to change the beneficiary, this amount
163. d (If the other information that is included contains a call for a specific action that will help accomplish the mission
of the charity and if the mailing is not directed solely to potential donors, a portion of the costs can be allocated
to program service expenses.)
164. a (Because of the time restriction, the amount spent for playground equipment remains in temporarily restricted
net assets until depreciated. The equipment was bought at the end of the year so that no depreciation was
recorded and no reclassification was made.)

Quiz-XXII
1. c 21. b 41. a
2. d 22. d 42. b
3. b 23. a 43. b
4. e 24. d 44. a
5. c 25. c 45. c
6. e 26. a 46. c
7. c 27. a 47. a
8. c 28. c 48. b
9. b 29. d
10. d 30. b
11. d 31. d
12. a 32. c
13. d 33. d
 14. d 34. a
15 b 35 c
16. d 36. a
17. a 37. a
18. e 38. d
19. c 39. b
20. b 40. d

Theories
Completion Statements
1. unconditional
2. nonreciprocal
3. unconditional
4. when received
5. conditional
6. fair value
7. market quotations, appraisals, present-value calculations
8. nonfinancial assets, specialized skills
9. fair value, asset or asset enhancement
10. collection items
11. selectively
12. unrestricted, temporarily restricted, permanently restricted
13. endowments
14. temporarily restricted
15. temporarily restricted
16. temporarily restricted, unrestricted, donor-imposed stipulations, accounting policy,
explicit donor instructions
17. expire
18. whole
19. donor-imposed restrictions, donor-imposed restrictions
20. total assets, total liabilities, total net assets (equity)
21. unrestricted, temporarily restricted, permanently restricted
22. board-designated, unrestricted
23. category
24. unrestricted
25. separately
26. natural, matrix
27. gross
28. columnar, layered
29. change
30. direct, indirect
31. permits

True or False Statements

32. True 43. True 54. True 65. True
33. False 44. False 55. False 66. False
34. False 45. False 56. True 67. False
35. True 46. False 57. False 68. True
 36. True 47. False 58. False 69. True
37. False 48. False 59. False 70. True
38. False 49. True 60. True 71. False
39. True 50. False 61. True 72. False
40. True 51. True 62. True 73. False
41. True 52. False 63. True
42. False 53, False 64. True

Multiple Choice Theories

74. a 84. a 94. e 104. a 114. c 124. b 134. d 144. c
75. c 85. d 95. a 105. b 115. b 125. d 135. c 145. c
76. b 86. c 96. b 106. d 116. b 126. b 136. c 146. a
77. b 87. e 97. b 107. c 117. b 127. c 137. b 147. **
78. e 88. e 98. d 108. b 118. d 128. a 138. d 148. c
79. e 89. d 99. d 109. b 119. * 129. d 139. b 149. a
80. e 90. c 100. d 110. a 120. d 130. d 140. b 150. b
81. e 91. d 101. a 111. b 121. b 131. d 141. c 151. b
82. d 92. d 102. b 112. b 122. d 132. d 142. b 152. c
83. a 93. c 103. a 113. d 123. e 133. b 143. c
*contribution revenue
**incomplete data

Note for Nos.:

148. (The work of the librarian does not enhance a nonfinancial asset nor does it require a specialized skill that would be
purchased if not donated.)
149. (The FASB wanted to get away from fund accounting and provide information about the private not-for-profit
organization as a whole.)