1. Which of the following would be recognized as a liability of the statement of financial condition (balance sheet) of Community Sercvice, Inc?
a) A CPA firm, has performed its audit of Community Services' financial statements and has not yet been paid for its services.
b) Community Service billed Mr. Kim, a client, $100 for the counseling services tha he received last week.
c) Mr. Park , who was recently fired by Community Services, has filed a $ 2,000,000 wrongful discharge suit.
d) Community Services received a $52,000 grant from the Field Foundation that is restricted as support for Community Services' counseling program.
2. An increase in the long-term notes payable is reported on the statement cash flows as
a) Cash from Operations
b) Cash from Investing Activities
c) Cash from Financing Activities
d) An increase in long-term notes payable is not reported on the statement of Cash flows
3. Which of the following statements about expenses are true under accrual basis of accounting?
a) Expenses represent the resources an organization uses during a period of time
b) All expenses reflect cash outflows by the organization at the time they are recognized
c) Expenses cannot be incurred before an organization pays for a resources
d) Expenses result in a decrease in net assets for a non-profit organization