Reference no: EM13577984

1. What are the three categories of net assets required by GAAP in reporting a not-for-profit organization?

A) Unrestricted, Temporarily Restricted, and Permanently Restricted
B) Unrestricted, Restricted, and Fund Balance
C) Restricted, Permanently Restricted, and Fund Balance
D) Unrestricted, Temporarily Restricted, and Fund Balance
E) None of the above

2. The following gifts are received in Year One by a not-for-profit organization:I. $2,000 specified by the donor to be used to pay salaries.II. $10,000 for new conference room furniture.III. $5,000 to be held for one year before being expended.The salaries are paid in Year Two and the conference room furniture is purchased in Year One. 24. How much should be shown as increases as Temporarily Restricted Net Assets in Year One?

A) $2,000
B) $7,000
C) $12,000
D) $15000
E) $17,000

3. A gift to a not-for-profit school that is not restricted by the donor is credited to:

A) Fund Balance
B) Deferred Revenues
C) Contribution Revenues
D) Nonoperating Revenues
E) Encumbrances

4. When a person dies without leaving a valid will, how is the distribution of his or her property determined?

A) In accordance with federal inheritance laws
B) In accordance with generally accepted accounting principles
C) In accordance with a plan developed by the executor of the estate
D) In accordance with state inheritance laws
E) In accordance with common law

5. A demonstrative legacy is a

A) gift of personal property that is directly identified
B) cash gift from a particular source
C) gift of estate property that remains after carrying out the other provisions of the will
D) gift of real property
E) gift of intangible property

6. In a will, a devise is a

A) gift of personal property that is directly identified
B) cash gift from a particular source
C) gift of estate property that remains after carrying out the other provisions of the will
D) gift of real property

7. Executor's fees and court costs for settling an estate usually

A) must be apportioned between the principal and the income of the estate
B) are adjustments to the principal of the estate
C) are adjustments to the income of the estate
D) are subtracted from life insurance proceeds

8. In an executor's accounting for an estate, debts and other obligations are recorded

A) at book value
B) at fair value
C) on the date of payment
D) as soon as they are discovered
E) only if they are past due

9. A testamentary trust is a trust

A) intended to protect the assets of a minor
B) that is managed by the trustor
C) that is managed by an estate
D) established by a living person
E) established by a will

10. The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my savings account; and to my Daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000. The gift to David is a

A) general legacy
B) specific legacy
C) demonstrative legacy
D) residual legacy
E) devise

11. The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my savings account; and to my Daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000. How much would James have received from the estate?

A) $50,000
B) $40,000
C) $25,000
D) $45,000
E) $30,000