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$9)$ According to the FASB, how should unrealized gains on the investment portfolio of a not$-$for$-$profit organization be recognized?

A$)$ Not recognized.

B$)$ Reported in the net asset section of the balance sheet.

C$)$ Reported according to whether the gains relate to trading, or held$-$to$-$maturity assets.

D$)$ Reported on the statement of activities.

$10)$ In the current year, the not$-$for$-$profit organization Save the Butterflies Foundation received cash of $$500$ to be used as the Foundation wishes and $$1,000$ to be used for butterfly research. Save the Butterflies also received pledges of $$700$ that it can use as it wishes and $$600$ for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year?

A$)$ $$1,000.$

B$)$ $$1,600.$

C$)$ $$1,300.$

D$)$ $$2,300.$

$11)$ For financial reasons, two not$-$for$-$profit hospice organizations $($hospices A and B$)$ decided to combine to form a new not$-$for$-$profit organization. As a result of the combination, the assets and liabilities of the combined hospice were reported at the amounts that had been previously reported by A and B on their financial statements. Under the FASB, the combining of hospices A and B would be classified as which of the following?

A$)$ Merger.

B$)$ Consolidation.

C$)$ Acquisition.

D$)$ Component unit.

$12)$ The board of directors for a nongovernmental not$-$for$-$profit organization decided to designate $$20,000$ each year for the next three years to fund a special research project it was planning to conduct at the end of the three$-$year period. How would these board$-$designated resources be reported on the statement of financial position?

A$)$ Net assets with donor restrictions.

B$)$ Net assets without donor restrictions.

C$)$ Internal payable.

D$)$ The resources would not be reported on the statement of financial position.

$13)$ The Uniform Prudent Management of Investment Funds Act $($UPMIFA$)$ provides rules on the use and reporting of:

A$)$ Revenues.

B$)$ Endowment assets.

C$)$ Cash.

D$)$ Liabilities.

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