11. Not-for-profit organizations report their cash flows in which of the following categories? a) Operating noncapital financing capital financing investing. b) Operating noncapital financing investing. c) Operating capital financing investing. d) Operating financing investing. 12. Not-for-profit organizations should report contributions restricted for long-term purposes in which of the following cash flows categories? a) Operating b) Financing. c) Capital financing. d) Investing. 13. Not-for-profit organizations should report interest and dividends earned and restricted for long-term purposes in which of the following cash flows categories? a) Operating b) Financing. c) Capital financing. d) Investing. 14. The characteristic that most clearly distinguishes a contribution from an exchange transaction is which of the following? a) Cash is always received. b) An exchange transaction is a reciprocal transfer of resources. c) An exchange transaction is a nonreciprocal transfer of assets. d) There are always restrictions attached to use of the assets received as a result of a contribution. 15. Revenue from an exchange transaction may be classified as an increase in which class of net assets? a) Unrestricted net assets. b) Temporarily restricted net assets. c) Permanently restricted net assets. d) Any of the above. 16. During the annual fundraising drive the Cancer Society raised $900 000 in pledges of financial support for their general operations. By the fiscal year-end the Society had collected $600 000 of the pledges. The Society estimates that 10% of the remaining pledges will be uncollectible. The NET amount of revenue the Society should recognize during the current year from this pledge drive is a) $900 000. b) $870 000. c) $810 000. d) $600 000. Use the following information to answer Questions 17 through 20. United Charities’ annual fund raising drive in 2006 raised pledges of $600 000 of which $400 000 were collected in 2006 and $100 000 were collected in 2007. United Charities estimates $75 000 of the remaining pledges will never be collected. 17. The increase in unrestricted net assets in 2006 as a result of the fund raising drive is a) $600 000. b) $525 000. c) $400 000. d) $125 000. 18. The increase in temporarily restricted net assets in 2006 as a result of the fundraising drive is a) $600 000. b) $525 000. c) $400 000. d) $125 000. 19. In 2007 the change in temporarily restricted net assets is a) $0 b) $100 000 decrease. c) $100 000 increase. d) $500 000 decrease. 20. In 2007 the change in unrestricted net assets is a) $0 b) $100 000 increase. c) $100 000 decrease. d) $500 000 increase.
