Select from the option list provided the most likely classification(s) of net assets, if any, that are affected by each transaction of a not-for-profit entity. The entity reports the minimum required classes of net assets. Each choice may be used once, more than once, or not at all.
Transaction - Answer
1. Legally restricted gains.
2. Expenses reported by functional classification.
3. Contributions of services that do not create or enhance nonfinancial assets or require special skills.
4. Costs of collection items not capitalized by the NFP.
5. Board-designated endowment.
6. Expenses reported by natural classification.
7. Conditional promise to give if the barrier has not been overcome.
8. Unconditional promises to give cash with amounts due in future periods.
9. Receipt of a gift restricted to acquisition of a long-lived asset that has been placed in service. The entity chooses to imply a time restriction over the life of the asset.
10. Investment return on a donor-restricted perpetual endowment fund with no donor restriction on the investment return, which has not been appropriated by the governing board.
11. Losses on an underwater endowment fund.
(Options):
Net Assets without Donor Restrictions
Net Assets with Donor Restrictions
Net Assets without Donor Restrictions or Net Assets with Donor Restrictions
Temporarily Restricted Net Assets
Permanently Restricted Net Assets
No Effect on Net Assets
The answer is as follows.
1. Legally restricted gains. - Temporarily Restricted Net Assets
2. Expenses reported by functional classification. - No Effect on Net Assets
3. Contributions of services that do not create or enhance nonfinancial assets or require special skills. - No Effect on Net Assets
4. Costs of collection items not capitalized by the NFP. - No Effect on Net Assets
5. Board-designated endowment. - Permanently Restricted Net Assets
6. Expenses reported by natural classification. - No Effect on Net Assets
7. Conditional promise to give if the barrier has not been overcome. - Net Assets with Donor Restrictions
8. Unconditional promises to give cash with amounts due in future periods. - Net Assets without Donor Restrictions
9. Receipt of a gift restricted to acquisition of a long-lived asset that has been placed in service. The entity chooses to imply a time restriction over the life of the asset. - Permanently Restricted Net Assets
10. Investment return on a donor-restricted perpetual endowment fund with no donor restriction on the investment return, which has not been appropriated by the governing board. - Net Assets without Donor Restrictions
11. Losses on an underwater endowment fund. - No Effect on Net Assets
Select from the option list provided the most likely classification(s) of net assets, if any, that...
Select from the option list provided the most likely classification(s) of net assets, if any, that are affected by each transaction of a not-for-profit entity. The entity reports the minimum required classes of net assets. Each choice may be used once, more than once, or not at all. Transaction - Answer 1. Legally restricted gains. 2. Expenses reported by functional classification. 3. Contributions of services that do not create or enhance nonfinancial assets or require special skills. 4. Costs of...
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Required information [The following information applies to the
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year. The entity has one program service (health care) and two
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The board of governors for Rochester Medical (RM) announces
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near future to acquire equipment. These funds are invested until
the purchase eventually occurs.
RM receives a donation of $80,000 in cash with the stipulation
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