Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 16, Problem 15.8EP
Wellness Psychiatric Clinic received a large contribution from the family of a former patient. The contribution came with a request that the funds be used or invested to support any activities that the clinic felt would be best. On this not-for-profit clinic’s statement of cash flows, this contribution would be reported in which section?
- a. Noncapital financing activities.
- b. Operating activities.
- c. Financing activities.
- d. Investing activities.
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Chapter 16 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - What is an example of a performance indicator and...Ch. 16 - Prob. 5QCh. 16 - Prob. 6QCh. 16 - What are assets limited as to use and how do they...Ch. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 10Q
Ch. 16 - Prob. 11CCh. 16 - Prob. 15.1EPCh. 16 - Prob. 15.2EPCh. 16 - Which of the following is a true statement...Ch. 16 - Prob. 15.4EPCh. 16 - Prob. 15.5EPCh. 16 - Prob. 15.6EPCh. 16 - Prob. 15.7EPCh. 16 - Wellness Psychiatric Clinic received a large...Ch. 16 - Prob. 15.9EPCh. 16 - Prob. 15.10EPCh. 16 - Prob. 16EPCh. 16 - Prob. 17EPCh. 16 - Prob. 18EPCh. 16 - Prob. 19EPCh. 16 - Prob. 20EPCh. 16 - Prob. 21EPCh. 16 - Prob. 22EPCh. 16 - Prob. 23EP
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- You are provided with a summarized version of the cash account of Lakeside Hospital, a not-for-profit organization for 2018. Cash Account Debit Credit Cash balance, January 1, 2018 Cash received from: Patients Third-party payors Operation of gift shop Unrestricted gifts Contributions restricted for endowment Donor-restricted contributions for purchase of propertyand equipment Early repayment of long-term debt. Cash paid to: Employees Suppliers. Providers of consultation services Bank for interest . Contractor for purchase of property and equipment Cash balance, December 31, 2018 275,900 2,061,900 6,500,000 517,700 323,500 500,000 183,000 1,320,500 242,300 1,151,000 6,200,000 800,000 147,000 501,200 Prepare a statement of cash flows, using the direct method, for the year ended December 31, 2018.arrow_forward45. Which one of the following is not a required fi- nancial statement for a private voluntary health and welfare organization? a. Statement of Financial Position b. Statement of Activities and Changes in Net Assets c. Statement of Fund Balance d. Statement of Cash Flows e. Statement of Functional Expensearrow_forwardSuppose you were the financial manager of a not-for-profit business (a not-for-profit hospital). What kinds of goals do you think would be appropriate?arrow_forward
- A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local community. The charity receives an additional $1,500 from members in payment of annual dues. Members are assumed to receive benefits approximately equal in value to the amount of dues paid. How should this money be recorded? Choose the correct.a. Revenues of $33,500.b. Public support of $33,500.c. Public support of $32,000 and a $1,500 increase in the fund balance.d. Public support of $32,000 and revenue of $1,500.arrow_forwardHow does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes ? What types of revenues are recognized by voluntary health and welfare organizations ?arrow_forwardWrite a detailed report covering the following topics: 1. ACCOUNTING FOR COLLEGES AND UNIVERSITIES • What Unique Issues do Colleges and Universities Face? • What are different revenues and expenses? • Accounting for revenues and expenses- Give examples • Treatment of grants and donations 2. ACCOUNTING FOR HEALTH CARE PROVIDERS/HOSPITALS • What Unique Issues do Health Care Providers Face? • What are the Key Differences Between Private Not-For-Profit and Government Health Care Providers? • What Are the Basic Financial Statements? • What are the Key Revenues and Expenses? • How are the key revenues and expenses recognized?arrow_forward
- A voluntary health and welfare entity produces a statement of functional expenses. What is the purpose of this statement? Separates current unrestricted and current restricted funds. Separates program service expenses from supporting service expenses. Separates cash expenses from noncash expenses. Separates fixed expenses from variable expenses.arrow_forwardA private not-for-profit entity sends a direct mail solicitation for monetary donations. Other information is included with the mailing. Under what conditions can the organization report part of the cost of this mailing as a program service cost rather than as purely a fund-raising cost?arrow_forwardA nonprofit analyst seeks to determine which variables should be used to predict nonprofit charitable commitment, a nonprofit organization commitment to its charitable purpose. Two independent variables under consideration are Revenue, a measurement of total revenue, in billions of dollars, as a measure of nonprofit size X₁ and Efficiency, a measurement of the percent of private donations remaining after fundraising expenses as a measure of nonprofit fundraising efficiency X2. The dependent variable Y is Commitment, a measurement of the percent of total expenses that are allocated directly to charitable services. Data are collected from a random sample of 98 nonprofit organizations, with the results provided in the accompanying table. Complete parts (a) and (b) below. Click the icon to view the table of results. a. Construct 95% confidence interval estimates of the population slope between commitment and revenue and between commitment and efficiency. The 95% confidence interval…arrow_forward
- 45. Which one of the following is not a required fi- nancial statement for a private voluntary health and welfare organization? a. Statement of Financial Position b. Statement of Activities and Changes in Net Assets c. Statement of Fund Balance d. Statement of Cash Flows e. Statement of Functional Expense 46. Gerlack College, a private, not-for-profit institu- tion, received a donation of $2,000,000 as a challenge grant. If the college raises an additional $2,000,000 within the next two years, it may keep the donation. If it fails, the $2,000,000 must be returned to the do- nor. How would the college record the receipt of the grant? a. Unrestricted revenue. b. Temporarily restricted revenue. c. Note to the financial statement. d. Refundable advance.arrow_forwardAs the manager of a nonprofit organization please list five policies that you can implement to protect your organization's cash?arrow_forwardDiscuss the key differences between cash and accrual accounting? Explain why most health entities use accrual accountingarrow_forward
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