Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 18, Problem 2UTI
To determine
Introduction: The unrestricted current funds are the funds that are available to the organization without any restrictions to use funds for current activities by the outside party.
To define: The reason for the difference in treatment and accounting for investment under profit or not-for-profit entities. And identify the more beneficial approach.
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Which of the following is true regarding a not-for-profit organization’s reporting of gains and losses on investments purchased with permanently restricted assets?a. gains and losses can only be reported net of expenses in the statement of activities.b. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in unrestricted net assets.c. gains may not be netted against losses in the statement of activities.d. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in permanently restricted net assets.
Which of the following accounting rules apply to all not-for-profit organizations? (Select all that apply.)
The financial statements must include a statement of functional expenses
The balance sheet must segregate assets according to restrictions on their use.
The balance sheet must segregate current assets from long-term assets.
The balance sheet must show reserves for likely amount of bad debts.
Equipment must be reported net of accumulated depreciation.
The activity statement must report expenses as decreases in net assets with donor restrictions.
The activity statement must segregate revenues according to restrictions on their use.
Define Not-for-Profit organizations. Explain what distinguishes governmental not-for-profit organizations from nongovernmental, not-for-profit organizations. Why is such a distinction necessary? Mention the objectives of financial reporting of not-for-profit organizations?
Chapter 18 Solutions
Advanced Accounting
Ch. 18 - Prob. 1UTICh. 18 - Prob. 2UTICh. 18 - Prob. 3UTICh. 18 - Prob. 5UTICh. 18 - Prob. 4.2ECh. 18 - Prob. 4.3ECh. 18 - Prob. 4.4ECh. 18 - Prob. 4.5ECh. 18 - Record the following events of Mental Health...Ch. 18 - Prob. 8E
Ch. 18 - Prob. 18.1.1PCh. 18 - Prob. 18.1.2PCh. 18 - Prob. 18.1.3PCh. 18 - Prob. 18.1.4PCh. 18 - Prob. 18.1.5PCh. 18 - Prob. 18.1.6PCh. 18 - Prob. 18.3.3PCh. 18 - Prob. 18.3.4PCh. 18 - Prob. 18.3.5PCh. 18 - Prob. 18.7.1PCh. 18 - Thirty years ago, a group of civic-minded...Ch. 18 - Prob. 18.8.1PCh. 18 - Prob. 18.8.2PCh. 18 - Prob. 18.9.1PCh. 18 - Prob. 18.9.2P
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