23. What are the three categories of net assets required by GAAPin reporting a not-for-profit organization?
A) Unrestricted, Temporarily Restricted, and PermanentlyRestricted
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
24. The following gifts arereceived in Year One by a not-for-profit organization:I. $2,000specified by the donor to be used to pay salaries.II. $10,000 fornew conference room furniture.III. $5,000 to be held for one yearbefore being expended.The salaries are paid in Year Two and theconference room furniture is purchased in Year One. 24. How muchshould be shown as increases as Temporarily Restricted Net Assetsin Year One?
A) $2,000
B) $7,000
C) $12,000
D) $15000
E) $17,000
25. A gift to a not-for-profitschool that is not restricted by the donor is creditedto:
A) Fund Balance
B) Deferred Revenues
C) Contribution Revenues
D) Nonoperating Revenues
E) Encumbrances
26. When a person dies withoutleaving a valid will, how is the distribution of his or herproperty determined?
A) In accordance with federal inheritance laws
B) In accordance with generally accepted accountingprinciples
C) In accordance with a plan developed by the executor of theestate
D) In accordance with state inheritance laws
E) In accordance with common law
27. 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 theother provisions of the will
D) gift of real property
E) gift of intangible property
28. In a will, adevise 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 theother provisions of the will
D) gift of real property
29. Executor's fees and courtcosts for settling an estate usually
A) must be apportioned between the principal and the income ofthe 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
30. In an executor's accountingfor 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
31. 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
32. The terms of a will currentlyundergoing probate are: "A gift to my brother David of $25,000cash; to my son James, $50,000 from my savings account; and to myDaughter Lila, all of my remaining property." At the time of death,the balance in the savings account was $40,000, and there wasadditional cash (after payment of funeral expenses and all claimsagainst 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
33. The terms of a will currentlyundergoing probate are: "A gift to my brother David of $25,000cash; to my son James, $50,000 from my savings account; and to myDaughter Lila, all of my remaining property." At the time of death,the balance in the savings account was $40,000, and there wasadditional cash (after payment of funeral expenses and all claimsagainst the estate) of $70,000. How much would James have receivedfrom the estate?
A) $50,000
B) $40,000
C) $25,000
D) $45,000
E) $30,000
23. What are the three categories of net assets required by GAAPin reporting a not-for-profit organization?
A) Unrestricted, Temporarily Restricted, and PermanentlyRestricted
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
24. The following gifts arereceived in Year One by a not-for-profit organization:I. $2,000specified by the donor to be used to pay salaries.II. $10,000 fornew conference room furniture.III. $5,000 to be held for one yearbefore being expended.The salaries are paid in Year Two and theconference room furniture is purchased in Year One. 24. How muchshould be shown as increases as Temporarily Restricted Net Assetsin Year One?
A) $2,000
B) $7,000
C) $12,000
D) $15000
E) $17,000
25. A gift to a not-for-profitschool that is not restricted by the donor is creditedto:
A) Fund Balance
B) Deferred Revenues
C) Contribution Revenues
D) Nonoperating Revenues
E) Encumbrances
26. When a person dies withoutleaving a valid will, how is the distribution of his or herproperty determined?
A) In accordance with federal inheritance laws
B) In accordance with generally accepted accountingprinciples
C) In accordance with a plan developed by the executor of theestate
D) In accordance with state inheritance laws
E) In accordance with common law
27. 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 theother provisions of the will
D) gift of real property
E) gift of intangible property
28. In a will, adevise 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 theother provisions of the will
D) gift of real property
29. Executor's fees and courtcosts for settling an estate usually
A) must be apportioned between the principal and the income ofthe 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
30. In an executor's accountingfor 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
31. 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
32. The terms of a will currentlyundergoing probate are: "A gift to my brother David of $25,000cash; to my son James, $50,000 from my savings account; and to myDaughter Lila, all of my remaining property." At the time of death,the balance in the savings account was $40,000, and there wasadditional cash (after payment of funeral expenses and all claimsagainst 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
33. The terms of a will currentlyundergoing probate are: "A gift to my brother David of $25,000cash; to my son James, $50,000 from my savings account; and to myDaughter Lila, all of my remaining property." At the time of death,the balance in the savings account was $40,000, and there wasadditional cash (after payment of funeral expenses and all claimsagainst the estate) of $70,000. How much would James have receivedfrom the estate?
A) $50,000
B) $40,000
C) $25,000
D) $45,000
E) $30,000
