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Unit 7   Chpt 11




1.Do you think that a not-for-profit organization’s board can release the restrictions on money in a strike fund and use it for General operations? Does it matter if the strike fund is held by a steel workers’ union to pay benefits to its members during a strike, versus a fund used by a not-for-profit as a safety reserve in case its workers go on strike?   




2. To what extent do not-for-profit organizations have the ability to choose among the following:


a. using depreciation,


b. ignoring depreciation,


c. maintaining building and equipment on the balance sheet at their original cost


d. showing such assets at their market value, or


e. completely charging such assets such as expenses in the year acquired?




3. Distinguish between the way investor owned and not-for-profit health care organizations treat investments


4. How does the accounting industry define a not-for-profit organization and a VHWO?





Finkler, S. A. (2010). Financial management for public, health, and not-for-profit     


             organizations (3rd ed.). Upper Saddle River, NJ: Prentice Hall.




Case Study


Read “Individual Rehabilitation Services (IRS)” on pages 442-444 and complete the problem on page 443 using the data provided below it.




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