Question

Which of the following are typically included in the bank account reconciliation?

Bank service charges

Outstanding checks

Deposits in transit

All of the above

Which of the following is included in the Statement of Activities?

Total fundraising expenses

Cash in back

Cash flows from investing activites

None of the above

Which of the following is an example of a source document?

Volunteer time sheet

Purchase order

Donor pledge card

All of the above

Costs of operating a vehicle for both program services and organization management should be included within which functional expense category?

Program services

Management & general

Allocate between program services and management & general on a reasonable basis

Fundraising

Which of the following is an example of an indirect cost that should be shared among functional expense categories

Salary and benefits of the executive director who spends time on program, management, and fundraising duties

An information packet to be distributed to program recipients

Costs of producing a brochure advertising the annual fundraising dinner

Costs of lunch for a board meeting

In December 2020, organization X, a nonprofit using a calendar fiscal year, received a grant of $10,000 with donor instructions that it is to be used for general operations in 2021. In which category of support should the grant be classified on X’s Statement of Activities for the year ending December 31, 2020?

Unrestricted contributions

Temporarily restricted contributions

Permanently restricted contributions

The grant funds should be reported as deferred revenue liability in the December 2020 financial statements and reclassified as an unrestricted contribution in 2021

Which of the following statements regarding a trial balance is true?

A trial balance must be prepared by a CPA

A trial balance is the last item performed in the bookkeeping cycle

A trial balance assures that the general ledger is in balance before creating any adjusting entries needed for financial statement preparation

None of the above

Which of the following should be charged to an expense account?

Purchase of property

Purchase of an office computer

Replacement of a vehicle engine and transmission

None of the above

Of the following statements regarding the chart of accounts is true. Which one is it?

Accounts are listed in alphabetical order

A properly designed chart of accounts helps assure appropriate and consistent classification of transactions

Designing the chart of accounts does not require any specialized accounting knowledge

A chart of accounts is not necessary with most software-based bookkeeping systems

All of the following statements about a contribution confirmation needed by a donor for tax reporting are correct except:

It may be sent by email

It should include the donor’s name, address, and separately list any single contribution of $250 or more

It must be sent by January 31 of the following year

It must state whether any goods or services were provided in exchange for the donation

Within which functional expense category should legal and accounting fees be classified?

Program services

Management & general

Fundraising

Allocate to each of the above categories on a reasonable basis

When possible, which of the following duties should NOT be performed by the bookkeeper, but should be done by someone else?

Preparing a purchase order

Approving an invoice for payment

Receiving a delivery of goods

All of the above

Which of the following sources of income are classified as a contribution (donation)?

A gift accompanied by restrictions as to its use

Program service revenue

Interest income

None of the above

Which of the following is an example of a poor internal control practice?

The bookkeeper stamps checks received with a restrictive endorsement at the time the bank deposit is prepared

The monthly bank account reconciliation is performed by the board treasurer

Checks must be signed by both the bookkeeper and treasurer

Both a and c

A donation of non-cash property is recorded at which of the following values?

The amount the donor paid for the property

The current fair market value of the property

Donations of non-cash property are not recorded on the books

Either a or b

Which of the following is not an example of an expense account?

Office supplies

Accounts payable

Depreciation

Bad debts

The balance of loans and other liabilities are presented on which of the following financial statements?

Statement of cash flows

Statement of activities

Statement of financial position

Statement of functional expenses

Which of the following statements about the IRS form 990 series is true?

The Form 990-N e-Postcard may be used by organizations with less than $50,000 of gross income

If the organization fails to file an appropriate form 990 for 3 consecutive years, it will automatically lose its tax-exempt status

Form 990 must be made available for public inspection

All of the above

Hands-on math: Please add the following dollar amounts and provide the correct total: 64.15 + 10,211.19 + 5.66 + 1,344,991.04 + 176.76 + 898.98 + 454.19 + 71.11 + 44,231.12 + 96,454.89 + 156.11 + 789.43 + 700.10 + 2,001,565.32

Answer 1

Answers are :

1. Which of the following are typically included in the bank account reconciliation ?

Answer : All of the above.

2. Which of the following is included in the Statement of Activities ?

Answer : Total Fundraising expenses. AND Cash flows from investing activities.

3. Which of the following is an example of a source document ?

Answer : Purchase Order.

4. Costs of operating a vehicle for both program services and organization management should be included within which functional expense category ?

Answer : Allocate between program services and management & general on a reasonable basis.

5. Which of the following is an example of an indirect cost that should be shared among functional expense categories ?

Answer : Costs of lunch for a board meeting.

6. In December 2020, organization X, a nonprofit using a calendar fiscal year, received a grant of $10,000 with donor instructions that it is to be used for general operations in 2021. In which category of support should the grant be classified on X’s Statement of Activities for the year ending December 31, 2020?

Answer : Temporarily restricted contributions.

7. Which of the following statements regarding a trial balance is true?

Answer : A trial balance assures that the general ledger is in balance before creating any adjusting entries needed for financial statement preparation.

8. Which of the following should be charged to an expense account?

Answer : Purchase of an office computer.

9. Of the following statements regarding the chart of accounts is true. Which one is it?

Answer : A properly designed chart of accounts helps assure appropriate and consistent classification of transactions.

10. All of the following statements about a contribution confirmation needed by a donor for tax reporting are correct except:

Answer : It may be sent by email.

11. Within which functional expense category should legal and accounting fees be classified?

Answer : Management & general.

12. When possible, which of the following duties should NOT be performed by the bookkeeper, but should be done by someone else?

Answer : Receiving a delivery of goods.

13. Which of the following sources of income are classified as a contribution (donation)?

Answer : Program service revenue.

14. Which of the following is an example of a poor internal control practice?

Answer : The monthly bank account reconciliation is performed by the board treasurer.

15. A donation of non-cash property is recorded at which of the following values?

Answer : The current fair market value of the property.

16. Which of the following is not an example of an expense account?

Answer : Office supplies.

17. The balance of loans and other liabilities are presented on which of the following financial statements?

Answer : Statement of financial position.

18. Which of the following statements about the IRS form 990 series is true?

Answer : All of the above.

19. Hands-on math: Please add the following dollar amounts and provide the correct total:

Answer : $3,500,770.05