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FASB Statement No. 117 directs that revenues and expenses be reported in a (TRUE/FALSE)




Question;1. FASB Statement No. 117 directs that revenues and expenses be reported in a statement of financial position.2. In the statement of activities, FASB Statement No. 117 requires revenues to be reported as increases in one of the three categories of net assets, depending on donor-imposed restrictions, however, all expenses should be reported as decreases in unrestricted net assets.3. Restricted contributions may be reported as unrestricted if the restriction has been met in the same period as the contribution is made.4. FASB Statement No. 95 requires not-for-profits to use the direct method in their statements of cash flows.5. In accounting for investments, not-for-profits, like businesses, must report their investments at fair value and classify the investments as trading, or available-for-sale, or held-to-maturity.6. FASB Statement No. 93 makes the recognition of depreciation on plant and equipment assets optional at the discretion of the not-for-profit.7. Temporarily restricted funds related to plant and equipment generally account only for resources restricted to their purchase or construction, not for the plant and equipment itself, which are typically reported in the unrestricted fund.8. All not-for-profit organizations, including city-owned museums and two-year community colleges, must adhere to FASB accounting and financial reporting standards.9. FASB standards require not-for-profit organizations to classify their resources into three categories: unrestricted, temporarily restricted, and permanently restricted.10. Expenses should be classified as unrestricted or temporarily restricted, consistent with the classification of the resources used to finance them.


Paper#51979 | Written in 18-Jul-2015

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