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    Cpa Review School of The Philippines Manila

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    Aljur Salameda
    This document contains a review for an advanced financial accounting exam for non-profit organizations. It includes multiple choice questions that test understanding of key concepts such as recognizing contributions, classifying net assets, and preparing common financial statements. It also includes word problems that require calculating amounts related to contributions, revenues, and cash flows for different non-profit scenarios.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cpa Review School of The Philippines Manila

    Uploaded by

    Aljur Salameda
    1K views3 pages
    This document contains a review for an advanced financial accounting exam for non-profit organizations. It includes multiple choice questions that test understanding of key concepts such as recognizing contributions, classifying net assets, and preparing common financial statements. It also includes word problems that require calculating amounts related to contributions, revenues, and cash flows for different non-profit scenarios.

    Original Description:

    Original Title

    9025 - Non-Profit Organization

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    This document contains a review for an advanced financial accounting exam for non-profit organizations. It includes multiple choice questions that test understanding of key concepts such as recognizing contributions, classifying net assets, and preparing common financial statements. It also includes word problems that require calculating amounts related to contributions, revenues, and cash flows for different non-profit scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views3 pages

    Cpa Review School of The Philippines Manila

    Uploaded by

    Aljur Salameda
    This document contains a review for an advanced financial accounting exam for non-profit organizations. It includes multiple choice questions that test understanding of key concepts such as recognizing contributions, classifying net assets, and preparing common financial statements. It also includes word problems that require calculating amounts related to contributions, revenues, and cash flows for different non-profit scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3
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    The document discusses accounting concepts related to contributions, revenues and expenses for non-profit organizations. It also contains practice problems related to these topics.

    Contributions can be unrestricted, temporarily restricted or permanently restricted depending on any limits set by the donor on the use of funds. They are recognized as revenues based on these classifications.

    Net assets for non-profits are classified as unrestricted, temporarily restricted or permanently restricted based on donor-imposed restrictions.

    CPA REVIEW SCHOOL OF THE PHILIPPINES

    Manila

    ADVANCED FINANCIAL ACCOUNTING GERMAN/VALIX/K. DELA CRUZ/MARASIGAN


    Non-Profit Organization (NPO)
    Part I: Theories

    1. Contributions whose availability is dependent upon the performance of a specific task, the
    happening of a future event, or the passage of time is classified as:
    A. Unrestricted contribution revenue
    B. Temporarily restricted contribution revenue
    C. Permanently restricted contribution revenue
    D. Liability

    2. An unconditional promise to give contributions are recognized by the NPO when _________.
    A. the promise is received from the donor
    B. the unconditional promise becomes conditional
    C. the promise is actually kept
    D. the promise is broken

    3. Service received as a donation that was neither provided by a professional nor enhance a
    non-financial asset __________.
    A. is recognized as an asset
    B. is recognized as an expense
    C. is recognized as a contra-revenue
    D. is not recognized

    4. An entity need not recognize contributions of works of art, historical treasures, or other
    similar assets if the item is added to a collection that meet all of the following conditions,
    except:
    A. Held for public exhibition, education, or research in furtherance of public service rather
    than financial gain
    B. Protected, kept unencumbered, cared for, and preserved
    C. Proceeds from sales of collection items are to be used to acquire other items for
    collections
    D. None of the choices

    5. Generally, a set of financial statement prepared by an NPO will include all of the following,
    except:
    A. Statement of Financial Position
    B. Statement of Activities
    C. Statement of Cash Flows
    D. Statement of Functional Expenses

    6. Under SFAS 117, the statement of financial position of a not-for-profit organization should
    report separate peso amounts for net assets according to which of the following
    classifications?
    A. Unrestricted, temporarily restricted, and permanently restricted
    B. With donor restrictions, and without donor restrictions
    C. Unrestricted and temporarily restricted
    D. Temporarily restricted and permanently restricted

    9025
    Page 2

    Part II: Problem Solving

    Problem 1
    Here4U, a non-profit organization, had the following contributions and activities during 2021:
    a. Received P200,000 cash from El Professor. Although no specific instruction was given
    by the donor as to its use, the Board of Here4U voted to set aside the said fund for the
    acquisition of computer units.
    b. Received P50,000 worth of office supplies from NBS, to be used for its operations. As of
    the end of the year, half the supplies were used up.
    c. Received P500,000 cash from Bogota, to be used for various repairs. During the year,
    P200,000 of this amount was used for various office repairs.
    d. Received P500,000 cash, and equity securities with fair value of P500,000, from
    Palermo. The donor stipulated that the amount be used for the acquisition of motor
    vehicles. Palermo explicitly stated that only the investment income from these shares can
    be used by NPO in its current operations.
    e. Received an unconditional pledge from donors worth P200,000. Based on past
    experience, 10% of the pledges are considered doubtful of collection.
    f. During the period, the equity securities from Palermo yielded dividends amounting to
    P10,000. Here4u also purchased P300,000 worth of motor vehicle at the end of the year.
    g. Helsinki, a Certified Public Accountant, offered Here4U its accounting services for free.
    Helsinki normally charges his clients P25,000 per year for such service.
    h. Received funds amounting to P1,000,000 from CHED which was to be disbursed as
    student loans.

    1. How much is the unrestricted contribution revenue recognized in 2021?


    A. 475,000
    B. 685,000
    C. 485,000
    D. 465,000

    2. How much is the net asset released from restriction in 2021?


    A. 300,000
    B. 500,000
    C. 200,000
    D. 510,000

    3. How much is the net increase in the unrestricted assets during 2021?
    A. 715,000
    B. 730,000
    C. 940,000
    D. 720,000

    9025
    Page 3
    Problem 2
    The records of St. Mungo’s Hospital for the Maladies and Injuries, a nonprofit hospital, had the
    following amounts on June 30, 2021:
    Patient Service Revenue (Gross) 3,720,000
    Charity Care 240,000
    Contractual adjustments 480,000
    Provision for doubtful accounts 140,000
    Rent Income from stalls 150,000
    How much is the net patient service revenue?
    A. 3,100,000
    B. 3,390,000
    C. 3,000,000
    D. 3,240,000

    Problem 3
    Heist Academy, a non-profit educational institution, assessed its students a total of P4,500,000 in
    tuition and other fees. The following additional data were made available:
    Estimated uncollectible amounts P150,000
    Scholarships granted to student assistants P225,000
    Discount given to graduate students accepting teaching P200,000
    assistantships
    Full Scholarships granted to Deans’s Listers, and sister city P300,000
    endorsees
    Refunds made P100,000
    How much is the net tuition and other fees revenue of Heist Academy?
    A. 3,950,000
    B. 4,100,000
    C. 3,900,000
    D. 3,875,000

    Problem 4

    Seve's Foundation, a nonprofit organization, had the following cash contributions and
    expenditures in 2021:
    Unrestricted cash contributions P1,500,000
    Cash contributions, restricted by the donor to the acquisition of a property 600,000
    Cash expenditures to acquire property with the donations in the above plan 600,000
    Cash contributions, specified by the donor to be held indefinitely 300,000
    Rental income and other income 250,000
    Operating Expenses 100,000
    Seve’s statement of cash flows should include which of the following amounts:
    Operating Activities Investing Activities Financing Activities
    A. 1,400,000 300,000 (600,000)
    B. (1,400,000) (300,000) 600,000
    C. 1,650,000 (600,000) 900,000
    D. (1,650,000) 600,000 (900,000)

    END
    9025

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