Week 8 Homework

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

WEEK 8 - ACTIVITY: HOMEWORK CHAPTER 121 Week 8 - Activity: Homework Chapter 12 Jenna Paz Strayer University ACC 410

WEEK 8 - ACTIVITY: HOMEWORK CHAPTER 122 Chapter 12 Exercise 12-1. Select the best answer. 1.A term endowment is a gift a.The principal of which must be returned to the donor after a specified period of time b.The principal of which is available for expenditure after a specified period of time c.The income from which must be expended within a specified period of time d.The income of which must be added to the principal for a specified period of time 2.A not-for-profit organization maintains an endowment of $1 million, the income from which must be used for research into substance abuse. In a particular year, the endowment had income of $60,000, all of which was expended in accord with the donor's specifications. The expense should be reported as a decrease in a.It is not recorded because it is not an expense b.Net assets with donor restrictions c.Net assets without donor restrictions d.None of the above 3.A private think tank receives a gift of $100,000 that must be used to fund a symposium on federal accounting. When the institution conducts the symposium, which of the following accounts should be debited in a restricted by donor fund? a.Program expense

WEEK 8 - ACTIVITY: HOMEWORK CHAPTER 123 b.Deferred revenue c.Net assets released from restriction d.Deferred program expense 4.The statement of cash flows of a not-for-profit should be divided into which of the following categories of cash flows? a.Operating activities, noncapital financing activities, capital and related financing activities, investing activities b.Operating activities, capital activities, investing activities c.Operating activities, financing activities, capital activities d.Operating activities, financing activities, investing activities 5.The Senior League, a not-for-profit welfare agency, redeemed a $100,000 bond that it had held as an investment of resources without donor restrictions. It also received an interest payment of $6,000. In its statement of cash flows, the league should report a.$106,000 as a cash flow from investing activities b.$106,000 as a cash flow from operating activities c.$100,000 as a cash flow from investing activities and $6,000 as a cash flow from financing activities d.$100,000 as a cash flow from investing activities and $6,000 as a cash flow from operating activities