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6.
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A country club received $3 million in dues from its members, $50,000 in initiation fees, $100,000 from public use, and $200,000 from investment income. What amounts are included for a gross receipts test to ascertain the club's exempt status? 22
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  3000000
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3200000
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3350000
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100000
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7.
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Which of the following statements describes why the IRS wants information regarding the 5 highest paid independent contractors? 25
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Expense reimbursements must be included so these amounts can be compared to returns filed by the contractors
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The information can be used to identify private benefit transactions and excess benefit transactions
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To verify similar information requested on Schedule O
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To determine how many contractors are being paid more than $100,000?
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8.
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Which of the following represent activities that trigger a supplemental schedule as in Part IV, Checklist of Required Schedules? 23
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Engaging in lobbying activities
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Reporting more than $15,000 of gross income from gaming activities
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Engaging in excess benefit transaction with a disqualified person
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All of the above
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9.
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Which of the following statements describes why amounts in Form 990 may not be comparable to the support schedule in Part 1I of Schedule A? 30
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The same accounting method need not be used in Part II of Schedule A as in Form 990.
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Tax revenues levied for organization's benefit must be reported in Schedule A
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The value of services provided at no charge by a government unit must be reported in Schedule A
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B and C
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10.
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How does an organization elect to be covered under ยง501(h) regarding precise dollar limits on permissible lobbying expenses? 31
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By filing Form 5768
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By filing Form 5778
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By completing Part I of Schedule A
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By filing Form 501(c)(3)
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11.
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What is a related organization referred to in Part IV, Checklist of Required Schedules? 32
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One where two organizations share some element of common control, such as where one or more officials is selected by officials of the other
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One where an historic and continuing relationship exists between the two
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One where transactions, including payments for performance of services occur at FMV & at arm's length
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A or B
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12.
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Mr. Patron paid $400 to a university for 2 theatre tickets which have a retail value of $200 (a quid pro quo donation). How much is tax-deductible for Mr. Patron? 34
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13.
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If an organization is not required to file Schedule B, how should this be indicated? 13
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Not filing the schedule is sufficient
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Include a blank form with Form 990
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Answer question in Line 2 in Part IV, Checklist of Required Schedules, which asks is the organization is required to file Schedule B.
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Telephone the IRS and leave a voice mail message
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14.
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An attorney who sits on a board also performs legal services for the organization and charges his normal hourly rate. Where should this transaction be reported? 26
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Schedule B, Schedule of Contributors
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It need not be reported because he is charging is normal hourly rate
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Form 990-T
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Schedule L, Transactions with Interested Persons
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15.
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What Line should tax exempt mortgages be reported on? 19
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Tax exempt bond liabilities-Line 20
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Secured Mortgages & notes payable-Line 23
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Other Liabilities-Line 25
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Land, Buildings, & Equipment, Line 10a
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16.
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Board designated quasi-endowment funds should be reported on what Line on the Balance Sheet? 19
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Unrestricted Funds
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Temporarily Restricted
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Permanently Restricted
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None of the above
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17.
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A college's reservation fees and paid deposits should be reported on what Line? 18
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Program Service Revenue
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Accounts Payable
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Deferred Revenue
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Other Expenses
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18.
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Which of the following is an example what should be included as "Other Assets", Line 58? 18
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Construction in Progress
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Commercial Paper
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Loan Receivable from a Trustee
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None of the Above
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19.
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Vehicle expenses should be reported on what Line or Lines? 17
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Line 11, Fees for Services
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Lines 5 through 7 Employee Compensation
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Line 17, Travel
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B or C
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20.
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A private college reported $50,000 on Line 1f of Form 990 as total contributions. Which of the following donations should also be reported in Schedule M? 31
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Cash donation of $1,000
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Common Stock worth $15,000
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A full roll of dimes in a green wrapper
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All of the above
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