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 4.3E
To determine
Introduction:ASC 958-605, accounts for revenue recognition in case of not for profit entities. It mainly states for the recognition and initial measurement of contribution received.
Two criteria must be met in order to recognize revenue:
- Volunteer services must be provided by volunteers having specialized knowledge or skills.
- If services not donated, organization should have purchased the service.
Persons who hold themselves as licensed professionals should possess a license or other professional certification.
To select: The best option.
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Which of the following statements is true?a. All not-for-profit organizations must include a statement of functional expenses.b. Donor-restricted contributions whose restrictions have been met in the reporting period may be reported as unrestricted support.c. Statements should focus on the individual unrestricted and restricted funds of the organization.d. FASB ASC 958-605 contains requirements that are generally more stringent than those relating to for-profit organizations.
Which of the following is not a criterion that must be met under FASB ASC 958-605-25-16 for contributed services? a. They are provided by persons possessing required skills. b. They are provided by licensed professionals. c. They create or enhance nonfinancial assets. d. They would typically have to be purchased if not provided by the donors/volunteers.
The following questions concern the accounting principles and procedures applicable to a private not-for-profit entity. Write answers to each question.
What is the difference between revenue and public support?
What is the significance of the statement of functional expenses?
What accounting process does a private charity use in connection with donated materials?
What is the difference in the two types of restricted net assets found in the financial records of a private not-for-profit organization?
Under what conditions should the entity record donated services?
What is the proper handling of costs associated with direct mail and other solicitations for money that also contain educational materials?
A not-for-profit receives a painting. Under what conditions can this painting be judged as a work of art? If it meets the criteria for a work of art, how is the financial reporting of the entity affected?
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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