Reference no: EM13348387

Question:

"Provide the complexities related to preparing and interpreting the statement of cash flow, determine the current requirement under GAAP and IFRS, showing improvements that you would make to each method's requirement to better serve the users of the information. Give a rationale for your changes.

Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows, detailing how the distortion will impact the decisions made by financial statement users. Suggest how these errors can be minimized.

Question:

1. Securities shown to an NPO should be recorded at the

A. Donor's recorded amount.

B. Fair market value at the date of the gift, or the donor's recorded amount, whichever is lower.

C. Fair market value at the date of the gift, or the donor's recorded amount, whichever is higher.

D. Fair market value at the date of the gift.

2. A local philanthropist pledged to make a donation of $100,000 to an NPO to be paid in 5 equal installments of $20,000 starting in the next fiscal year. Under FASB standards the pledge would be recognized as

A. Support of $20,000 in each of the subsequent five years.

B. Support of $20,000 in the year the pledge was made and $80,000 as deferred support.

C. Deferred support of $100,000 in the year the pledge was made.

D. Support of $100,000 in the year the pledge was made, discounted at an appropriate rate for future receipts.

3. Which of the subsequent expenses would be considered a program service expense for the local cancer society?

A. Salary of a home care nurse

B. Salary of the local director

C. Rent for the local office

D. Printing costs for a fund-raising brochure

4.The sale of revenue bonds by a water utility fund would be recorded

A. In the governmental activities accounts as a liability.

B. In an enterprise fund as a liability.

C. In an enterprise fund as "Proceeds of Bonds."

D. In an enterprise fund as a revenue.

5.Which of the subsequent properly portrays the components of net position for proprietary funds?

A. Net investment in capital assets, Unreserved, Reserved.

B. Designated, Restricted, Undesignated, Unrestricted.

C. Net investment in capital assets, Restricted, Unrestricted.

D. Net investment in capital assets, Contributed capital, Reserved, Unreserved.