question

A term that describes a government's ongoing ability and willingness to raisse revenues, incur debt, and meet its financial obligations as they become due is

answer

Fiscal Capacity

question

The term that is defined as determining whether current-year revenues are sufficient to pay for the services provided that year and whether future taxpayers will be required to assume burdens for services previously provided is

answer

Interperiod equity

question

A financial capability ratio that measures the degree to which the annual budget is loaded with disbursements to pay off long-term debt is:

answer

Debt service load

question

Which of the following trends is most likely to be a signal of impending fiscal stress?

answer

A decreasing ratio of total revenues to total expenditures.

question

Which of the following ratios would be most helpful in assessing the operating position of a governmental entity?

answer

General fund balance/operating revenues.

question

Which of the following ratios would be considered favorable if it was low?

answer

Debt service to total revenues.

question

A measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date is

answer

Unrestricted net position/total revenues

question

The term that is closely related to the concept of liquidity is

answer

finacial position

question

Which ratio or concept describes the extent to which the government has lived within its means for the year?

answer

Interperiod equity

question

Which of the following is a measure of the extent to which the government's business type activities are self-supporting?

answer

Business type activities revenues/ business type activities expenses

question

Which of the following statements about credit analysts' models is true?

answer

Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due.

question

Which of the following would be considered contribution revenue or support of a not for profit organization

answer

Monies received from a fund raising campaign.

question

A donor provides a large cash contribution that is to be used for acquisition of a new building. Under FASB standards, how would this contribution be reported by a not-for-profit organization on its statement of cash flows?

answer

Financing activity

question

Depreciation expense in a not-for-profit organization should be

answer

Assigned to or allocated to the functions to which it relates.

question

Investments in equity securities that have a readily determinable market value and all debt securities of a not for profit organization are reported at

answer

fair value

question

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is

answer

Investment income.

question

A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on the

answer

Statement of activities.

question

The FASB Codification requires the following financial statements for all nongovernmental, not-for-profit organizations

answer

Statement of financial position, statement of activities, and statement of cash flows.

question

When a nongovernmental not-for-profit organization spends money for the purpose for which an external donor intended, then the expense is reported as a

answer

Decrease in unrestricted net assets.

question

Under FASB standards how would a not-for-profit organization recognize a conditional pledge?

answer

It would not recognize the conditional pledge until pledge conditions are substantially met.

question

A not-for-profit organization incurred $10,000 in management and general expenses in the current fiscal year. In the organization's statement of activities prepared in conformity with FASB standards, the $10,000 would be reported as

answer

Supporting services expenses.

question

Which of the following statements is true regarding fund accounting for not-for-profit organizations (NFPs)?

answer

Fund accounting can provide a good mechanism for facilitating reporting to donors.

question

Temporarily restricted net assets are released from restrictions

answer

As assets are spent for the purposes intended by the donor.

question

An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel. Dividends received from the securities should be recognized as increases in

answer

Temporarily restricted net assets.

question

A college has collected returnable dormitory room deposits from students. How would these deposits be reported by the college?

answer

A current Liability

question

Colleges and universities often make loans to students. How would these loans be reported on the financial statements?

answer

A receivable.

question

What type of college or university must report expenses by functional classification?

answer

Private colleges and universities.

question

Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university?

answer

Current ratio.

question

Which of the following is a typical classification of a functional expense in a college or university?

answer

Institutional support.

question

Which of the following receipts may properly be accounted for as an increase in unrestricted net assets by a private college?

answer

Student tuition and fees.

question

Which of the following items would not affect the amounts reported in the Revenues and Gains section of the statement of activities for a private college or university?

answer

Deferred revenues.

question

Which of the following is required as part of a complete set of financial statements for a private college or university?

answer

Statement of changes in operations.

question

Cactus College, a small private college, received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance. In accordance with FASB standards the grant would be reported as an increase in:

answer

Temporarily restricted net assets.

question

Which of the following is not a classification of revenues for a college or university as recommended by the National Association of College and University Business Officers (NACUBO)?

answer

Sporting events.

question

A private college would report which of the following assets differently than a public college?

answer

Intangible Assets

question

State educational appropriations received by a public university are classified as which of the following on the statement of revenues, expenses, and changes in net position?

answer

Nonoperating revenue.

question

Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payer are reported as

answer

Deductions from gross patient revenue in arriving at net patient revenue.

question

Where does a nongovernmental not-for-profit health care entity report increases that have occurred in its temporarily restricted net assets?

answer

Statement of changes in net assets.

question

Contractual Adjustments is properly characterized as

answer

A contra revenue.

question

Which of the following is not a financial statement prepared by nongovernmental not-for-profit health care entities?

answer

Statement of revenues, expenses, and changes in net assets.

question

The primary source of revenue for most hospitals is

answer

Exchange transactions, such as fees for services.

question

Which of the following would usually be considered as temporarily restricted net assets in a nongovernmental not-for-profit hospital?

answer

A research grant from the federal government to study high blood pressure.

question

Which of the following would be considered an asset limited as to use?

answer

Cash the board of directors has designated for equipment acquisitions.

question

Charity service and bad debts in a public hospital that follows business-type accounting are

answer

Reported differently, with charity service disclosed in the notes to the financial statements and bad debts reported as a deduction from revenue.

question

Which of the following volunteer service is most likely to be reported by a private hospital as contribution revenue and an expense?

answer

Nurses from a religious organization who volunteer to assist in the care of critically ill children.

question

The statement of activities required by FASB standards for not-for-profit health care entities must display changes for the period in which of the following categories of net assets?

answer

Unrestricted, temporarily restricted, and permanently restricted.

question

Independent health care organizations that associate for the specific purpose of obtaining financing are called a(an)

answer

Obligated group.

question

How would the cash acquisition of equipment be reported on a health care entity's statement of cash flows?

answer

Investing activity applying FASB standards.

question

Which of the following could be included in the performance indicator measure provided by a nongovernmental not-for-profit hospital?

answer

Gain on sale of equipment.

Nonprofit Final – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards