Multiple Choice Quiz

Choose the best answer for each of the following questions and enter the identifying letter in the space provided.

1		Resources of a nonprofit organization's unrestricted fund that have been set aside for a specific purpose by the board of directors of the organization are accounted for in:
			A)	The unrestricted fund
			B)	A term endowment fund
			C)	A restricted current fund
			D)	An annuity fund
			E)	None of the foregoing
2		The fund used to record resources contributed to a nonprofit organization on the condition that the organization pay a fixed periodic amount to a named individual for a fixed time period is:
			A)	Loan fund
			B)	Agency fund
			C)	Life income fund
			D)	Annuity fund
			E)	None of the foregoing
3		The cash basis of accounting is appropriate for a nonprofit organization's:
			A)	Pledges received from potential donors
			B)	Contributions of goods and services
			C)	Interest on loans made to students
			D)	Salaries expense
4		Nonprofit organizations recognize pledges as receivables and revenues if the pledges are:
			A)	Received in cash
			B)	Deemed collectible
			C)	Unconditional
			D)	Legally enforceable
5		The AICPA's Hospital Audit Guide was replaced by:
			A)	Health Care Organizations
			B)	Not-for-Profit Organizations
			C)	Financial Reporting by Not-for-Profit Organizations: . . .
			D)	Nonprofit Accounting Guide
6		Nonprofit organizations that do not depend on the general population for a substantial portion of their revenues include:
			A)	Political parties
			B)	Professional associations
			C)	Research and scientific organizations
			D)	None of the foregoing
7		Is a revenues valuation account used for: Contractualadjustments? Tuitionremissions?
			A)	Yes - Yes
			B)	Yes - No
			C)	No - Yes
			D)	No - No
8		Are contributions of services recognized as revenues by a nonprofit organization if the services: Createnonfinancial assets? Requirespecialized skills?
			A)	Yes - Yes
			B)	Yes - No
			C)	No - Yes
			D)	No - No
9		Some characteristics of nonprofit organizations that resemble those of business enterprises are the use of the accrual basis of accounting, measurement of cost expirations, and governance by a board of directors.
			A)	True
			B)	False
10		The concept of net income is applicable to many types of nonprofit organizations.
			A)	True
			B)	False