Why is a private not-for-profit entity more likely to use

Assignment Help Financial Accounting
Reference no: EM132949040

Problem 1: Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be?

Option 1: The direct method is the traditional approach for private not-for-profit entities.
Option 2: An indirect method reconciliation does not have to be included as it does with for-profit entities.
Option 3: The indirect method does not conform as easily with a private not-for-profit entity and its operations.
Option 4: The direct method is likely to show a more positive amount of operating activity cash inflows.

A private not-for-profit entity receives three large cash donations:

One gift of $87,000 is restricted by the donor so that it cannot be spent for four years.
One gift of $107,000 is restricted to pay the salaries of the entity's workers.
One gift of $137,000 must be held forever with the income to be used to provide food for needy families. In the current year, income of $27,000 was earned but not spent.

Problem 2: What is the increase in the current year in net assets with donor restrictions?

Multiple Choice

Option 1: $224,000
Option 2: $244,000
Option 3: $331,000
Option 4: $358,000

Reference no: EM132949040

Questions Cloud

Explain the financial institutions and markets appropriate : Salty Pawz was established using Wanda's personal funds, since she initially sold her products only to friends and family and was able to pay for everything as
What type of adjustment is used : A commission income account in the trial balance at the end of the year showed a balance of Php12,000.1/5 of the amount is already earned
What is the increase in the current year in net assets : What is the increase in the current year in net assets with donor restrictions? One gift of $90,000 is restricted to pay the salaries of the entity's workers.
Evaluate the revised malaysian companies act : The CA 2016 reformed almost all aspects of company law in Malaysia. Evaluate the revised Malaysian Companies Act 2016
Why is a private not-for-profit entity more likely to use : Why is a private not-for-profit entity more likely to use the direct method of reporting operating activity cash flows than a for-profit business would be?
What are the three types of restricted net assets : A statement of activities shows account balances in two separate columns. How are those columns labeled? What are the three types of restricted net assets?
How much of each total monthly payment can mia deduct : In addition, Mia makes a voluntary payment of $110 per month. How much of each total monthly payment can Mia deduct in 2018
What is relationship between entrepreneurship and innovation : What is the relationship between entrepreneurship and innovation? Illustrate how to apply the general venturing template to entrepreneurship
Prepare consolidated statement of financial position at dec : Prepare consolidated statement of financial position at December 31, 2019. The Herco Company purchased 70% of the outstanding voting share.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the change in the owners equity amount

If assets increased by $8,000 and the total liabilities decreased by $2,000 during the accounting period, what is the change in the owner’s equity amount? Paul invested cash in his new business. What effect will this have?

  What is the present value of liability

What is the present value of this liability

  Discuss the accounting treatment for blackjack

Discuss the accounting treatment. Blackjack is a local government organization whose financial statements are prepared using IFRS.

  What is the accumulated depreciation on a building costing

What is the accumulated depreciation on a building costing $1,004,572.00? How to record in journal?

  Prepare a formal cash flow statement

Determine the weekly payment with weekly compounding of interest and determine the bi-weekly payment with bi-weekly Compounding of interest

  What is the interest expense to be recognized on the date

Aldous Company accepted from a customer P5,000,000 face amount, 6-month, What is the interest expense to be recognized on the date of discounting?

  Liberty bicycles manufactures

Liberty bicycles manufactures 3500 bicycles each minth. Variable Manufacturing costs are $45 per unit, while total fixed manufacturing costs are $52,500. Liberty normally sells it's bicycles directly to retailers for $160 each. Liberty just received ..

  Calculate stockholders equity at the end of the period

Liabilities = $27,000; Dividends = $3,000; Revenues = $14,000; Expenses = $9,000. Calculate stockholders equity at the end of the period

  What value should you place on this bond

Interest payments are made semi-annually. What value should you place on this bond if your nominal annual required rate of return is (i) 14 percent

  Prepare journal entries to record the december

Prepare journal entries to record the December 2012 transactions, post those entries to t-accounts and prepare journal entries for the required adjusting entries.

  Compute the earnings per share on common stock

The balance sheet for XYZ Co. at the end of the current fiscal year indicated the following: Compute the earnings per share on common stock

  How much would have to deposit today

How much would you have to deposit today? You would like to have $6,000 dollars in an account after three years' time. If the account earns 6% compounded.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd