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Thich of the following statements is true regarding not-for-profit organizations? a. The operating purposes of the organization do not include profit. b. The organization is prohibited from earning a profit. c. All not-for-profit organizations operate for purely charitable or eleemosynary purposes. d. Ownership interests of not-for-profit organizations are identical to those of commercial er Which of the following is true regording not-for-profit accounting financiol statements? a. Organization-wide not-for-profit financial statements must include reconciliation to the not-for-profit organizotion's fund financial statements. b. Not-for-profit organization financial statements and disclosures may not include any reference to funds. c. Not-for-profit organizations may maintain funds for internal ocoounting purposes and may elect to disclose those funds. d. External financial statements must focus on the individual restrictions associated with each classification. The Board of Directors of the Do Good Foundation set aside $100,000 of the Foundation's resources for the construction of an addition to the Foundation's administration building. The Board of Director's action would couse the $100,000 set aside to be classified as: a. Net assets with donor restrictions. b. Net ossets without donor restrictions. c. Net assets with conditional restrictions. d. Net assets with unconditional restrictions. The Do Good Foundation received $100,000 to permanently endow a teaching position dedicated to good works in the local school system. The donor stipulated that the earnings from the donation would bo used for the tescher's salary but that the endowment would not be spent. The Foundation would account for the $100,000 recoivod for the ondowment as: a. Net assets with donor restrictions. b. Net assets without donor restrictions. c. Net assets with conditional restrictions. d. Net assets with unconditional restrictions. The Do Good Foundotion receives annual contributions restricted for the occomplishment of good programs. Annual contributions ore routinely fully utilized by year end. In this situotion, the Do Good Foundation would record restricted good program earnings in what way? a. The Do Good Foundation may record the good program eornings in the net assets without donor restrictions class. b. The Do Good Foundation must record the good program earnings in the net assets with donor restrictions class and only reclassify them upon their use for the purpose intended. c. The Do Good Foundation would record a memo odjustment ocknowledging the restricted nature of good program earnings. d. The Do Good Foundation would disclose good program revenues only if they were derived from donor restricted donations. The Top Notch Golf and Country Club incurred $100,000 in membership development costs would most likely be recorded as: a. Program Services Expenses. b. Support Activities Expenses. c. Administrative Services. d. Contra Revenue

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