Chapter 10 – Accounting for Private Not-for-Profit
10-1
CHAPTER 10 ACCOUNTING FOR PRIVATE NOT–FOR-PROFIT
10-1. ANSWERS WILL VARY DEPENDING ON STATEMENTS OBTAINED.
10-2.
A. THE FINANCIAL REPORTS REQUIRED BY THE FASB FOR NONPROFIT ORGANIZATIONS ARE (1)
STATEMENT OF FINANCIAL POSITION, (2) STATEMENT OF ACTIVITIES, AND (3) STATEMENT
(2) TEMPORARILY RESTRICTED, AND (3) PERMANENTLY RESTRICTED.
C. PROPERTY, PLANT, AND EQUIPMENT IS TO BE RECORDED, AS IS TRUE FOR BUSINESS
ORGANIZATIONS, AS LONG–TERM ASSETS AND DEPRECIATED IN ACCORD WITH ESTIMATED
LIVES (OF COURSE, EXCEPT FOR LAND).
THE FASB HAS GIVEN AN OPTION REGARDING THE ACQUISITION OF PROPERTY, PLANT, AND
Chapter 10 – Accounting for Private Not-for-Profit
10-2
10-3.
A. RESOURCES THAT HAVE BEEN RESTRICTED BY THE DONOR FOR EXPENDITURE IN FUTURE
PERIODS WOULD BE RECOGNIZED AS CONTRIBUTION REVENUE, INCREASING TEMPORARILY
RESTRICTED NET ASSETS, IN THE YEAR IN WHICH THE PLEDGE OR CASH IS RECEIVED,
WHICHEVER COMES EARLIER. WHEN THE TIME PERIOD ARRIVES, THE RESOURCES WOULD BE
RECLASSIFIED TO THE UNRESTRICTED CLASS OF NET ASSETS. WHEN THE DONOR IS SILENT
CONTRIBUTION, THE ENTITY HAS THE OPTION OF RECORDING THE CONTRIBUTION REVENUE
AS UNRESTRICTED.
B. A CONDITION IS A HAPPENING OR EVENT THAT MUST OCCUR BEFORE REVENUE IS
RECOGNIZED. FOR EXAMPLE, A DONOR MAY IMPOSE THE CONDITION THAT A NONPROFIT
ORGANIZATION RAISE MATCHING FUNDS BEFORE A DONATION IS MADE. A NONPROFIT
Chapter 10 – Accounting for Private Not-for-Profit
10-3
D. MULTI–YEAR PLEDGES SHOULD BE RECORDED AS REVENUE IN THE YEAR OF THE PLEDGE IN
THE TEMPORARILY RESTRICTED ASSET CLASS, AS THOSE PLEDGES ARE RESTRICTED AS TO
10-4.
A. A MERGER IS A TRANSACTION IN WHICH THE GOVERNING BODIES OF TWO OR MORE NOT–
FOR–PROFIT ENTITIES RELINQUISH CONTROL OF THOSE ENTITIES TO CREATE A NEW NOT–
FOR–PROFIT ENTITY. TO QUALIFY AS A NEW ENTITY, THE COMBINED ENTITY MUST HAVE A
NEWLY FORMED GOVERNING BODY. AN ACQUISITION OCCURS WHEN A NOT–FOR–PROFIT
OBTAINS CONTROL OF ANOTHER NOT–FOR–PROFIT OR A BUSINESS IN A TRANSACTION NOT
Chapter 10 – Accounting for Private Not-for-Profit
10-4
D. 10-5.
UNRESTRICTED
NET ASSETS
TEMPORARILY
RESTRICTED NET
ASSETS
PERMANENTLY
RESTRICTED NET
ASSETS
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
1*
2
X
3
4
X
X
5
X
6
X
7
X
8**
9
X
10
X
11***
* BOARD DESIGNATED FUNDS ARE CLASSIFIED AS UNRESTRICTED. RESTRICTIONS MAY ONLY
BE DONOR IMPOSED.
** THE SERVICES DO NOT REQUIRE SPECIALIZED SKILL AND ARE THEREFORE NOT RECORDED.
*** THIS IS A CONDITIONAL PLEDGE AND WOULD NOT BE RECORDED UNTIL THE CONDITION
(MATCHING PLEDGES) IS MET.
Chapter 10 – Accounting for Private Not-for-Profit
10-5
10-6.
CENTERVILLE AREA HOMELESS SHELTER
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
REVENUES
UNRESTRICTED
TEMPORARILY
RESTRICTED
PERMANENTLY
RESTRICTED
TOTAL
CONTRIBUTION REVENUES
$ 1,514,500
40,060
6,250
1,560,810
NET ASSETS RELEASED FROM
RESTRICTION 2
28,000
(28,000)
0
0
TOTAL REVENUES
1,542,500
12,060
6,250
1,560,810
EXPENSES 1
TEMPORARY SHELTER PROGRAM
1,012,600
1,012,600
SELF–SUFFICIENCY PROGRAM
353,000
353,000
FUND RAISING
7,000
7,000
ADMINISTRATION
78,900
78,900
TOTAL EXPENSES
1,451,500
0
0
1,451,500
INCREASE IN NET ASSETS
91,000
12,060
6,250
109,310
NET ASSETS JANUARY 1
18,000
1,200
12,650
31,850
NET ASSETS DECEMBER 31
$ 109,000
13,260
18,900
141,160
NOTES:
1. EXPENSES: ALL EXPENSES ARE CLASSIFIED AS UNRESTRICTED IN THE STATEMENT OF
2. NET ASSETS RELEASED FROM RESTRICTION: THE INCREASE IN UNRESTRICTED NET ASSETS
3. ALL REMAINING AMOUNTS ARE COMPUTED ARITHMETICALLY, WORKING BACKWARDS FROM
Chapter 10 – Accounting for Private Not-for-Profit
10-7.
VOLUNTARY ACTION AGENCY – GENERAL JOURNAL
DEBITS
CREDITS
1.
JANUARY 1
CASH
CONTRIBUTIONS-TEMPORARILY RESTRICTED
250,000
250,000
JANUARY 2
MOTOR VEHICLES
CASH
250,000
250,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET ACQUISITION RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET ACQUISITION RESTRICTIONS
(TO RECORD EXPIRATION OF FIXED ASSET ACQUISITION
RESTRICTIONS)
250,000
250,000
DECEMBER 31
DEPRECIATION EXPENSE
ACCUMULATED DEPRECIATION-MOTOR VEHICLES
50,000
50,000
(ALTERNATIVELY, SINCE THE RECEIPT OF THE GIFT AND THE PURCHASE OF THE BUSES OCCURRED
IN THE SAME FISCAL YEAR, THE CONTRIBUTION COULD HAVE BEEN RECORDED DIRECTLY IN
UNRESTRICTED NET ASSETS.)
DEBITS
CREDITS
2.
JANUARY 1
CASH
CONTRIBUTIONS-TEMPORARILY RESTRICTED
250,000
250,000
JANUARY 2
MOTOR VEHICLES-TEMPORARILY RESTRICTED
CASH
250,000
250,000
DECEMBER 31
DEPRECIATION EXPENSE
ACCUMULATED DEPRECIATION-MOTOR VEHICLES
50,000
50,000
RECLASSIFICATIONS FROM TEMPORARILY RESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET RESTRICTIONS
50,000
50,000
10-7 (CONTINUED).
Chapter 10 – Accounting for Private Not-for-Profit
10-7
3. UNDER REQUIREMENT (1), NET ASSETS WOULD AMOUNT TO $200,000 IN UNRESTRICTED
NET ASSETS AND $0 IN TEMPORARILY RESTRICTED NET ASSETS AS A RESULT OF THE
TRANSACTIONS. UNRESTRICTED NET ASSETS WOULD CONSIST OF THE $250,000
IN THE MOTOR VEHICLE ACCOUNT LESS THE $50,000 DEPRECIATION. ANOTHER WAY TO
(1) WOULD BE CHOSEN AS THE $200,000 WOULD BE IN UNRESTRICTED NET ASSETS. A THIRD
(1), BUT CHOOSE TO DISPLAY SEPARATE AMOUNTS FOR “UNRESTRICTED NET ASSETS
Chapter 10 – Accounting for Private Not-for-Profit
10-8.
CANCER RESEARCH CENTER
GENERAL JOURNAL
DEBITS
CREDITS
1.
CONTRIBUTIONS RECEIVABLE (30,000 X 4.33)
CONTRIBUTIONS-TEMPORARILY RESTRICTED
129,900
129,900
2.
CONTRIBUTIONS RECEIVABLE
CONTRIBUTIONS-TEMPORARILY RESTRICTED
6,495
6,495
(129,900 * 5% )
3.
CASH
CONTRIBUTIONS-RECEIVABLE
30,000
30,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS– EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
EXPIRATION OF TIME RESTRICTIONS
(TO RECORD EXPIRATION OF TIME RESTRICTIONS)
30,000
30,000
RESEARCH EXPENSE: SALARY SUPPLEMENT
CASH
(ALL EXPENSES ARE CLASSIFIED AS UNRESTRICTED)
30,000
30,000
NOTE: THE PRESENT VALUE OF THE PLEDGE IS NOW ($ 30,000 X 3.545) = $106,350 (ROUNDED). THIS
EQUALS THE BALANCE OF THE CONTRIBUTIONS RECEIVABLE ACCOUNT.
Chapter 10 – Accounting for Private Not-for-Profit
10-9. EVANGELICAL PRIVATE SCHOOL
GENERAL JOURNAL
DEBITS
CREDITS
1.
A.
CASH
CONTRIBUTIONS-UNRESTRICTED
1,312,000
1,312,000
B.
CASH
CONTRIBUTIONS-TEMPORARILY RESTRICTED (PURPOSE
RESTRICTIONS)
495,000
495,000
C.
CASH
CONTRIBUTIONS-TEMPORARILY RESTRICTED (TIME
RESTRICTIONS)
300,000
300,000
D.
CASH
CONTRIBUTIONS-TEMPORARILY RESTRICTED (FIXED
ASSET RESTRICTIONS)
600,000
600,000
E.
CASH
CONTRIBUTIONS-PERMANENTLY RESTRICTED
400,000
400,000
2.
FURNITURE AND EQUIPMENT
CASH
400,000
400,000
3.
PROGRAM EXPENSE: SALARY SUPPLEMENT EXPENSE
CASH
(NOTE: OTHER EXPENSE ACCOUNT TITLES MAY BE USED BY
STUDENTS)
475,000
475,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS-SATISFACTION OF PROGRAM RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF PROGRAM RESTRICTIONS
(TO RECORD EXPIRATION OF PROGRAM RESTRICTIONS)
475,000
475,000
4.
NO ENTRY – THE $300,000 WILL BE RECLASSIFIED AT THE BEGINNING
OF NEXT YEAR AS THE EXPIRATION OF TIME RESTRICTIONS.
5.
BUILDINGS
CASH
725,000
725,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS-SATISFACTION OF FIXED ASSET ACQUISITION
RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET ACQUISITION RESTRICTIONS
(TO RECORD EXPIRATION OF FIXED ASSET ACQUISITION
RESTRICTONS)
600,000
600,000
Chapter 10 – Accounting for Private Not-for-Profit
10-9 CONTINUED
6.
INVESTMENTS
CASH
400,000
400,000
CASH
INTEREST REVENUE-UNRESTRICTED
11,500
11,500
10-10 (A)
OMBUDSMAN FOUNDATION
CLOSING ENTRIES
1.
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF PROGRAM RESTRICTIONS
225,000
250,000
CONTRIBUTIONS-UNRESTRICTED
PROGRAM SERVICE REVENUE-UNRESTRICTED
NET GAINS ON ENDOWMENT INVESTMENTS-UNRESTRICTED
CONTRIBUTED SERVICES – UNRESTRICTED
TRAINING SEMINAR EXPENSE
EDUCATION PROGRAM EXPENSE
RESEARCH PROGRAM EXPENSE
MANAGEMENT AND GENERAL EXPENSE
FUND RAISING EXPENSE
NET ASSETS-UNRESTRICTED
2,250,500
5,595,000
17,500
25,000
4,456,000
1, 505,000
1,256,000
365,000
116,000
665,000
2.
CONTRIBUTIONS-TEMPORARILY RESTRICTED
GRANT REVENUE – TEMPORARILY RESTRICTED
RECLASSIFICATION FROM TEMPORARILY RESTRICTED
NET ASSETS-EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION FROM TEMPORARILY RESTRICTED
NET ASSETS-SATISFACTION OF PROGRAM RESTRICTIONS
NET ASSETS-TEMPORARILY RESTRICTED
777,000
86,000
225,000
250,000
388,000
3.
CONTRIBUTIONS-PERMANENTLY RESTRICTED
NET ASSETS-PERMANENTLY RESTRICTED
2,650,000
2,650,000
Chapter 10 – Accounting for Private Not-for-Profit
10–11
10-10 (B)
OMBUDSMAN FOUNDATION
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2015
REVENUES
UNRE–
STRICTED
TEMPORARILY
RESTRICTED
PERMANENTLY
RESTRICTED
TOTAL
PROGRAM SERVICE REVENUE
$ 5,595,000
5,595,000
CONTRIBUTION REVENUES
2,250,500
777,000
2,650,000
5,677,500
CONTRIBUTED SERVICES
25,000
25,000
GRANT REVENUE
86,000
86,000
NET GAINS ON ENDOWMENT INVESTMENTS
17,500
17,500
NET ASSETS RELEASED FROM RESTRICTION
– SATISFACTION OF TIME RESTRICTIONS
225,000
(225,000)
–
– SATISFACTION OF PROGRAM RESTRICTIONS
250,000
(250,000)
–
TOTAL REVENUES
8,363,000
388,000
2,650,000
11,401,000
EXPENSES
TRAINING SEMINAR EXPENSES
4,456,000
4,456,000
EDUCATION PROGRAM EXPENSES
1,505,000
1, 505,000
RESEARCH PROGRAM EXPENSE
1,256,000
1,256,000
TOTAL PROGRAM SERVICE EXPENSES
7,217,000
7,217,000
FUND RAISING
116,000
116,000
ADMINISTRATION
365,000
365,000
TOTAL SUPPORTING SERVICE EXPENSES
481,000
481,000
TOTAL EXPENSES
7,698,000
7,698,000
INCREASE IN NET ASSETS
665,000
388,000
2,650,000
3,703,000
NET ASSETS JANUARY 1
358,000
759,000
1,250,000
2,367,000
NET ASSETS DECEMBER 31
$ 1,023,000
1,147,000
3,900,000
6,070,000
Chapter 10 – Accounting for Private Not-for-Profit
10–12
10-10 (C)
OMBUDSMAN FOUNDATION
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2015
CURRENT ASSETS:
CASH
$ 109,000
SHORT–TERM INVESTMENTS
750,000
SUPPLIES INVENTORIES
32,000
RECEIVABLES
ACCOUNTS (NET)
75,000
PLEDGES (NET)
45,000
ACCRUED INTEREST
15,500
TOTAL CURRENT ASSETS
1,026,500
NONCURRENT ASSETS:
PLEDGES RECEIVABLE
365,000
LONG–TERM INVESTMENTS
2,690,000
LAND, BUILDINGS AND EQUIPMENT (NET)
2,200,000
5,255,000
TOTAL ASSETS
$ 6,281,500
CURRENT LIABILITIES:
ACCOUNTS PAYABLE
$ 88,000
TOTAL CURRENT ASSETS
88,000
NONCURRENT LIABILITIES:
POST EMPLOYMENT BENEFITS PAYABLE
123,500
123,500
TOTAL LIABILITIES
211,500
NET ASSETS:
UNRESTRICTED
1,023,000
TEMPORARILY RESTRICTED
1,147,000
PERMANENTLY RESTRICTED
3,900,000
TOTAL NET ASSETS
6,070,000
TOTAL LIABILITIES AND NET ASSETS
$ 6,281,500
Chapter 10 – Accounting for Private Not-for-Profit
10-11.
A.
FOLPE MUSEUM ASSOCIATION
GENERAL JOURNAL
YEAR ENDED DECEMBER 31, 2015
DEBITS
CREDITS
1.
CASH
CONTRIBUTIONS-UNRESTRICTED
CONTRIBUTIONS-TEMPORARILY RESTRICTED (PURPOSE)
CONTRIBUTIONS-TEMPORARILY RESTRICTED (PURPOSE)
CONTRIBUTIONS-PERMANENTLY RESTRICTED
3,200,000
1,100,000
250,000
450,000
1,400,000
2.
CASH
ADMISSIONS REVENUE-UNRESTRICTED
INTEREST REVENUE-UNRESTRICTED
TUITION REVENUE-UNRESTRICTED
645,000
375,000
210,000
60,000
3.
CONTRIBUTIONS RECEIVABLE
CONTRIBUTIONS-TEMPORARILY RESTRICTED (TIME)
400,000
400,000
4.
CONTRIBUTIONS RECEIVABLE
CONTRIBUTIONS-TEMPORARILY RESTRICTED (TIME)
211,000
211,000
5.
TRAVEL DISPLAYS EXPENSE
CASH
225,000
225,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS-SATISFACTION OF PROGRAM RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF PROGRAM RESTRICTIONS
(TO RECORD EXPIRATION OF PROGRAM RESTRICTIONS)
225,000
225,000
6.
CASH
CONTRIBUTIONS RECEIVABLE
135,000
135,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS-EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
EXPIRATION OF TIME RESTRICTIONS
(TO RECORD EXPIRATION OF TIME RESTRICTIONS)
135,000
135,000
Chapter 10 – Accounting for Private Not-for-Profit
10-11 (CONTINUED).
DEBITS
CREDITS
7.
EQUIPMENT
CASH
575,000
575,000
RECLASSIFICATION FROM TEMPORARILY RESTRICTED NET
ASSETS-SATISFACTION OF FIXED ASSET ACQUISITION
RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET ACQUISITION
RESTRICTIONS
(TO RECORD EXPIRATION OF FIXED ASSET ACQUISITION
RESTRICTIONS)
450,000
450,000
8.
MUSEUM DISPLAYS EXPENSE
MUSEUM SCHOOL EXPENSE
MANAGEMENT AND GENERAL EXPENSE
FUND-RAISING EXPENSE
MEMBERSHIP DEVELOPMENT EXPENSE
CASH
1,300,000
90,000
350,000
250,000
145,000
2,135,000
9.
MUSEUM DISPLAYS EXPENSE
MUSEUM SCHOOL EXPENSE
MANAGEMENT AND GENERAL EXPENSE
FUND RAISING EXPENSE
MEMBERSHIP DEVELOPMENT EXPENSE
ACCUMULATED DEPRECIATION
40,000
7,000
12,000
4,000
4,000
67,000
Chapter 10 – Accounting for Private Not-for-Profit
CLOSING ENTRIES
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF FIXED ASSET ACQUISITION RESTRICTIONS
RECLASSIFICATION TO UNRESTRICTED NET ASSETS–
SATISFACTION OF PROGRAM RESTRICTIONS
135,000
450,000
225,000
CONTRIBUTIONS-UNRESTRICTED
ADMISSIONS REVENUE-UNRESTRICTED
INTEREST REVENUE-UNRESTRICTED
TUITION REVENUE-UNRESTRICTED
TRAVEL DISPLAYS EXPENSE
MUSEUM DISPLAYS EXPENSE
MUSEUM SCHOOL EXPENSE
MANAGEMENT AND GENERAL EXPENSE
FUND RAISING EXPENSE
MEMBERSHIP DEVELOPMENT EXPENSE
1,100,000
375,000
210,000
60,000
225,000
1,340,000
97,000
362,000
254,000
149,000
NET ASSETS – UNRESTRICTED
128,000
CONTRIBUTIONS-TEMPORARILY RESTRICTED (PURPOSE)
CONTRIBUTIONS-TEMPORARILY RESTRICTED (TIME)
RECLASSIFICATION FROM TEMPORARILY RESTRICTED
NET ASSETS-EXPIRATION OF TIME RESTRICTIONS
RECLASSIFICATION FROM TEMPORARILY RESTRICTED
NET ASSETS-SATISFACTION OF FIXED ASSET ACQUISITION
RECLASSIFICATION FROM TEMPORARILY RESTRICTED
NET ASSETS-SATISFACTION OF PROGRAM RESTRICTIONS
NET ASSETS-TEMPORARILY RESTRICTED
700,000
611,000
135,000
450,000
225,000
501,000
CONTRIBUTIONS-PERMANENTLY RESTRICTED
NET ASSETS-PERMANENTLY RESTRICTED
1,400,000
1,400,000
Chapter 10 – Accounting for Private Not-for-Profit
10-11.
FOLPE MUSEUM ASSOCIATION
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2015
UNRES–
STRICTED
TEMPOR–
ARILY
RESTRICTED
PERMA–
NENTLY
RESTRICTED
TOTAL
REVENUES, GAINS, AND OTHER
SUPPORT:
CONTRIBUTIONS
ADMISSIONS CHARGES
INTEREST INCOME
TUITION-MUSEUM SCHOOL
NET ASSETS RELEASED FROM RESTRICTIONS:
SATISFACTION OF PROGRAM RESTRICTIONS
SATISFACTION OF FIXED ASSET
ACQUISITION RESTRICTIONS
SATISFACTION OF TIME RESTRICTIONS
TOTAL REVENUES, GAINS, AND
OTHER SUPPORT
$1,100,000
375,000
210,000
60,000
225,000
450,000
135,000
2,555,000
$1,311,000
(225,000)
(450,000)
(135,000)
501,000
$1,400,000
_________
1,400,000
$3,811,000
375,000
210,000
60,000
________
4,456,000
PROGRAM EXPENSES:
TRAVELING DISPLAYS
MUSEUM DISPLAYS
MUSEUM SCHOOL
SUPPORTING EXPENSES:
MANAGEMENT AND GENERAL
FUND RAISING
MEMBERSHIP DEVELOPMENT
TOTAL EXPENSES
225,000
1,340,000
97,000
362,000
254,000
149,000
2,427,000
225,000
1,340,000
97,000
362,000
254,000
149,000
2,427,000
INCREASE (DECREASE) IN NET ASSETS
NET ASSETS, 1/1/2015
NET ASSETS, 12/31/2015
128,000
412,000
$ 540,000
501,000
150,000
$651,000
1,400,000
3,500,000
$4,900,000
2,029,000
4,062,000
$6,091,000
Chapter 10 – Accounting for Private Not-for-Profit
10–17
10-11.
B. ALTHOUGH THE MUSEUM SCHOOL HAS EXPENSES OF $ 97,000 AND REVENUES OF ONLY
$60,000, THIS IS NOT NECESSARILY AN INDICATION THAT THE PROGRAM SHOULD BE
DISCONTINUED. TRADITIONAL MEASURES OF OPERATING PROFIT OR LOSS ARE NOT WELL