Choose the best answer for each of the following questions.

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:
			A)	Contractual adjustments: Yes; Tuition remissions: Yes
			B)	Contractual adjustments: Yes; Tuition remissions: No
			C)	Contractual adjustments: No; Tuition remissions: Yes
			D)	Contractual adjustments: No; Tuition remissions: No
8			Are contributions of services recognized as revenues by a nonprofit organization if the services:
			A)	Create nonfinancial assets: Yes; Require specialized skills: Yes
			B)	Create nonfinancial assets: Yes; Require specialized skills: No
			C)	Create nonfinancial assets: No; Require specialized skills: Yes
			D)	Create nonfinancial assets: No; Require specialized skills: 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
11			A nonprofit ( not-for-profit) organization is a legal and accounting entity that is operated for the benefit of society as a whole, rather than for the benefit of an individual proprietor or a group of partners or stockholders.
			A)	True
			B)	False
12			The internal accounting unit for many nonprofit organizations is the fund, which is an accounting entity with a self-balancing set of accounts recording cash and other financial resources.
			A)	True
			B)	False
13			Under the accrual basis of accounting for an unrestricted fund, unconditional pledges are recognized as receivables and revenues in the unrestricted fund, with appropriate provision for doubtful pledges.
			A)	True
			B)	False