美國CPA模擬試題：政府與非盈利組織（二）

In Year 1, Community Helpers, a private voluntary health and welfare organization, received a bequest of a $100,000 certificate of deposit maturing in Year 11. The testator's only stipulations were that this certificate be held until maturity and that the interest revenue be used to finance salaries for a preschool program. Interest revenue for Year 11 was $8,000. When the certificate was redeemed, the board of trustees adopted a formal resolution designating $20,000 of the proceeds for the future purchase of equipment for the preschool program.

In regard to the certificate of deposit, what should be reported in the Year 11 statement of activities?

a. Legacies and bequests, $100,000.

b. Revenues control, $100,000.

c. Transfer to land, building, and equipment fund, $20,000.

d. Reclassification from temporarily restricted net assets of $100,000.

Explanation

Choice "d" is correct. When the certificate was redeemed, the $100,000 amount was reported in the Year 11 statement of activity as a reclassification from temporarily restricted net assets to unrestricted net assets on the face of the statement of activities.

Choice "a" is incorrect. The "contributions (revenue) - temporarily restricted" account was increased when the $100,000 was originally received in Year 1.

Choice "c" is incorrect. The maturity of the $100,000 CD represents a release from temporary restrictions not a transfer. In addition, there are no "funds" displayed for external reporting purposes in not for profit financial statements.

Choice "b" is incorrect. The $100,000 maturity of the CD is not revenues, it is, in this instance, a release from temporary restrictions. Temporarily restricted revenue would have been recorded in Year 1.