1) Internet-based exercise.
The objective of this exercise is to familiarize you with the key indicators and terms used by not-for-profit entities.
Go to the Forbes list of the 200 largest U.S. Charities for the most recent year available. For example, for 2011: http://www.forbes.com/lists/2011/14/200-largest-us-charities-11.htmlAnswer the following questions.
2) This problem summarizes typical transactions engaged in by not-for-profit organizations.
The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following events (in summary form):
- a.Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made.
- b.Prepare a year-end statement of financial position and statement of activities.
- 3) Internet-based exercise.
- Access the website of the American Red Cross (www.redcross.com) and the American Diabetes Association (www.diabetes.org) and obtain the audited financial statements for the fiscal year 2011 and Form 990 for 2011. Form 990 can also be obtained from www.GuideStar.org. Answer the following questions for each organization.