Table
of Contents
Chapter 1 Not-For-Profit Organizations. 9
Learning
Objectives: 9
Sources of GAAP. 9
Rules, Concepts,
and Illustrations. 10
Key GAAP. 11
Statement of
Financial Position. 12
Statement of
Activities 15
Statement of Cash
Flows. 17
Contributions
Received. 19
Expiration of
Donor-Imposed Restrictions. 19
Investments Held
by NFPO.. 20
Disclosing
Investment Income, Gains, and Losses. 20
Endowment Funds
that Are Donor Restricted. 20
Financial
Statement Disclosures. 21
Key Differences
between NFPOs and For-Profit Corporations 23
Chapter 1 Review
Questions 25
Chapter 2 Colleges
and Universities. 27
Learning
Objectives: 27
Overview and
Issues 27
Sources of GAAP. 28
Public Colleges
and Universities. 28
Private Colleges
and Universities. 28
Rules, Concepts,
and Illustrations. 28
Contributions. 34
Fund Accounting. 34
Current Funds
Revenues. 34
Current Funds
Expenditures and Transfers 35
Statements of
Position. 36
Chapter 2 Review
Questions 39
Chapter 3
Healthcare Providers. 40
Learning
Objectives: 40
Sources of GAAP. 41
Rules, Concepts,
and Illustrations. 41
Hospital
Accounting. 41
Hospital Fund
Structure. 42
Required Financial
Statements. 43
Contributions Made
to Not-For-Profit Healthcare Entities. 45
Summary of
Healthcare Accounting and Financial Reporting. 46
Chapter 3 Review
Questions 47
Chapter 4
Voluntary Health and Welfare Organizations. 48
Learning
Objectives: 48
Overview and
Issues 48
Concepts, Rules,
and Examples. 49
Financial
Statements. 49
Fund Accounting. 50
Investments. 51
Depreciation. 51
Public Support and
Revenue. 51
Contributions. 51
Expenditures 52
Joint Costs of
Informational Materials and Activities. 52
Statement of
Functional Expenses. 52
Other
Not-For-Profit Entities. 54
Accounting for
ONFPOs. 54
Financial
Statements of ONFPOs. 55
Not-For-Profit
Organizations and Financial Reporting. 55
Chapter 4 Review
Questions 57
Chapter 5
Not-for-Profit Financial Analysis and Metrics; Avoiding Bankruptcy. 59
Learning
Objectives: 59
Trend Analysis. 60
Analysis of the
Balance Sheet 61
Liquidity Analysis. 61
Financial
Flexibility. 64
Asset Utilization. 64
Analysis of Fixed
Assets 65
Analysis of
Liabilities 65
Appraisal of
Solvency, Capital Structure, and Net Assets (Fund Balance) 66
Evaluation of the
Statement of Activities. 66
Revenue. 67
Costs. 67
Profitability. 68
Disclosures. 69
Performance
Metrics 69
Charity Commitment 69
Fundraising
Efficiency. 69
Donor Dependency. 70
Fund Raising
Ability. 70
Analysis of
Pledges. 71
Analysis of
Contributions. 71
Looking At
Endowments. 71
Evaluation of
Grants. 72
Risk/Return
Analysis. 72
Audit Reliability. 73
Software. 73
Spotting Potential
Bankruptcy and Avoiding Financial Problems. 73
Case Study in
Financial Statement Analysis: 75
Family Service
Agency of Utopia. 75
Liquidity Analysis. 77
Analysis of
Solvency. 78
Analysis of the
Statement of Activities. 79
Chapter Summary. 82
Chapter 5 Review Questions 83
Review Question
Answers. 84
Chapter 1 Review
Questions Feedback. 84
Chapter 2 Review
Questions Feedback. 88
Chapter 3 Review
Questions Feedback. 90
Chapter 4 Review
Questions Feedback. 93
Chapter 5 Review Questions Feedback. 97
Appendix. 99
Glossary. 102
Index. 103
Exam Score
Sheet …………………………………………………………………………………….104
CPE Exam.. 105