1. 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 resource.
d) Expenses result in a decrease in net assets for a non-profit organization.
2. Non-profit organizations must segregate assets that are subject restrictions imposed by
a) management
b) board of trustees
c) customers
d) donors
3. Which of the following services would be recorded as both support and an expense in a non-profit organization?
a) a volunteer who comes in to help set up for the annual fund-raising ball
b) a parent who is an accountant who volunteers to keep the organization’s books
c) a physician who volunteers to serve on a community health service center’s board.