Question 1

Net assets with board-imposed restrictions are classified as temporarily restricted until
conditions are met.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 2
Contributions that create endowments are always reported in the statement of activities
and not as adjustments to equity.
Response: True
Correct answer: True

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Score: 1 out of 1 Yes

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Question 3

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The statement of financial position mush show total assets, total liabilities, and total net
assets. rs e
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Response: True
Correct answer: True
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Score: 1 out of 1 Yes

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Question 4
Expiration of restrictions must be reported separately in the statement of activities.
Response: True
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Correct answer: True

Score: 1 out of 1 Yes
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Question 5
The statement of financial position must show total amounts for each classification of
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net assets.
Response: True
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Correct answer: True

Score: 1 out of 1 Yes

Question 6

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 Income earned on endowments (other than term endowment) ir reported as increasing
permanently restricted assets.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 7
Assets transferred to a NPE where it has little or no discretion over their use may be
accounted for as temporarily restricted contributions.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

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Question 8

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Repairs made to a building on a volunteer basis by a plumber would not be recognized

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in the financial statements.

o.
Response: False
rs e
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Correct answer: False
Score: 1 out of 1 Yes
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Question 9
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The definition of contributions includes both reciprocal and nonreciprocal transfers.

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Response: False
Correct answer: False
ed d

Score: 1 out of 1 Yes

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Question 10
Contributed services are valued using the minimum wage.
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Response: False
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Correct answer: False

Score: 1 out of 1 Yes
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Question 11
Contributions received are measured at fair value.
Response: True
Correct answer: True

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 Score: 1 out of 1 Yes

Question 12
Unconditional promises to give are recognized in the financial statements when
received not when collected.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 13
A communication that is unclear as to whether it constitutes an unconditional promise
to give is deemed an unconditional promise if it is legally enforceable.
Response: False

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Correct answer: False

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Score: 1 out of 1 Yes

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Question 14

o.
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All expenses are reported in the unrestricted category, even expenses incurred in
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satisfying donor-imposed restrictions.
Response: True
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Correct answer: True

aC s

Score: 1 out of 1 Yes

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Question 15
Contributed services are recognized only if they create or enhance nonfinancial assets.
ed d

Response: False
ar stu

Correct answer: False

Score: 1 out of 1 Yes
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Question 16
Th

Private NPOs must present financial statements that focus on the NPO as a whole.
Response: True
sh

Correct answer: True

Score: 1 out of 1 Yes

Question 17

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 Conditional promises to give are considered unconditional if the probability that the
specified future event will occur is remote.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 18
Collection items need not be capitalized under certain circumstances.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 19

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Exchange transactions are the main source of revenues for most NPEs.

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Response: False

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Correct answer: False
Score: 1 out of 1 Yes rs e
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Question 20
Board-restricted net assets must be shown separately in the statement of financial
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position.
aC s
vi y re

Response: False
Correct answer: False
Score: 1 out of 1 Yes
ed d
ar stu

Question 21
Contributions that create term endowments are classified as increasing temporarily
restricted net assets.
is

Response: True
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Correct answer: True

Score: 1 out of 1 Yes
sh

Question 22
Fund accounting for internal record-keeping is specifically discouraged.
Response: False
Correct answer: False

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 Score: 1 out of 1 Yes

Question 23
Gifts in kind do not quality as recognizable contributions.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 24
A purpose restriction is deemed to have expired when an expense has been incurred
for that purpose.
Response: True
Correct answer: True

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Score: 1 out of 1 Yes

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Question 25

o.
An unconditional promise to give must be in writing to qualify as a recognizable
contributions. rs e
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Response: False
Correct answer: False
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Score: 1 out of 1 Yes

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Question 26
Contributions with future payment dates usually would be classified as increasing
temporarily restricted net assets.
ed d

Response: True
ar stu

Correct answer: True

Score: 1 out of 1 Yes
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Question 27
Th

The definition of contributions does not include conditional promises to give.

Response: True
sh

Correct answer: True

Score: 1 out of 1 Yes

Question 28

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 Revenues from special events that are ongoing and major activities are reported net of
related expenses.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 29
Gains and losses on investments are always treated as increases or decreases in
unrestricted net assets.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

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Question 30

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Collection items need not be depreciated.

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Response: True

o.
Correct answer: True
rs e
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Score: 1 out of 1
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aC s
vi y re
ed d
ar stu
is
Th
sh

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