NAME: Joven, Al Vincent M.

ACC316/413: ASSIGNED QUIZ 1

INSTRUCTIONS: HIGHLIGHT YOUR ANSWER IN YELLOW COLOR. ATTACH THE ACCOMPLISHED

QUIZ IN THE GOOGLE CLASSROOM.

1. A statement of functional expenses is required for which one of the following private nonprofit organizations?
a. Colleges c. Voluntary health and welfare organizations
b. Hospitals d. Performing arts organizations

2. The statement of financial position (balance sheet) for Founders Library, a private nonprofit organizations,
should report separately the library’s net assets according to which of the following classifications?
a. Unrestricted and permanently restricted
b. Temporarily restricted and permanently restricted
c. Unrestricted and temporarily restricted
d. Unrestricted, temporarily restricted, and permanently restricted

3. Philippine Museum, a private nonprofit organizations, has both regular and term endowments. On the
musuem’s statement of financial position (balance sheet), how should the net assets of each type of endowment
be reported?
Term endowments Regular endowments
a. Temporarily restricted Permanently restricted
b. Permanently restricted Permanently restricted
c. Unrestricted Temporarily restricted
d. Temporarily restricted Temporarily restricted

4. Which one of the following is not a required financial statement for a voluntary health and welfare
organization?
a. Statement of Financial Position
b. Statement of Activities and Changes in Net Assets
c. Statement of Fund Balance
d. Statement of Cash Flows
e. Statement of Functional Expense

5. Which of the following describes the entity that eventually receives the assets through the recipient
organizations, as specified by the donor?
a. The donee c. The recipient organization
b. The donor d. The beneficiary

6. Funds that are restricted for a a particular purpose or use in a future time period are
a. permanently restricted funds d. special designated funds
b. temporarily restricted funds e. unavailable for general use funds
c. unrestricted funds

7. According to FAS 116, unconditional transfers of cash or other resources to an entity in a voluntary
nonreciprocal transaction are
a. contributed services d. contributions
b. exchange transactions e. restricted funds
c. deferred revenues

8. Under FAS 116, donor-restricted contributions are recognized in the financial statements
a. When collected.
b. When received.
c. When the restrictions expire.
d. When the conditions stipulated by the donor are fulfilled.

9. A religious organization received a building and land as a gift from a local company with the understanding
that the building would be used as a training center for organization members or for any other purpose
consistent with the organization’s mission. How would the nonprofit organization report the contribution?
a. As temporarily restricted support.
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NAME: Joven, Al Vincent M.
ACC316/413: ASSIGNED QUIZ 1
b. As unrestricted support.
c. As permanently restricted support.
d. As temporarily restricted support or unrestricted support at the discretion of the board.
e. None of the above.
10. Under FAS 117, which of the following categories of net assets is not required to be shown in the statement of
financial position?
a. Permanently restricted. c. Board-restricted.
b. Temporarily restricted. d. Unrestricted.

11. Kerry College, a private not-for-profit college, received P25,000 from Ms. Mary Smith on April 30, 2017.
Ms. Smith stipulated that her contribution be used to support faculty research during the year beginning on July
1, 2017. On July 15, 2017, administrators of Kerry awarded research grants totaling P25,000 to several faculty
in accordance with the wishes of Ms. Smith. For the year ended June 30, 2017, Kerry College should report
the P25,000 contribution as
a. Temporarily restricted revenues on the statement of activities
b. Unrestricted revenue on the statement of activities
c. Temporarily restricted deferred revenue on the statement of activities
d. An increase in fund balance on the statement of financial position

12. Good Hope, a private not-for-profit voluntary health and welfare organization, received a cash donation of
P500,000 from Mr. Charles Peobody on November 15, 2017. Mr. Peobody requested that his donation be used
to acquire equipment costing P500,000 in January of 2018. For the year ended December 31, 2017, Good
Hope should report the P500,000 contribution on its
a. Statement of activities as unrestricted revenue
b. Statement of financial position as temporarily restricted deferred revenue
c. Statement of financial position as unrestricted deferred revenue
d. Statement of activities as temporarily restricted revenue

13. On the statement of activities for a private not-for-profit performing arts center, expenses should be deducted
from
I. Unrestricted revenues
II. Temporarily restricted revenues
III. Permanently restricted revenues
a. I, II, and III b. Both I and II c. I only d. II only

14. Save the Planet, a private nonprofit research organization, received a P500,000 contribution from Ms. Susan
Clark. Ms. Clark stipulated that her donation be used to purchase new computer equipment for Save the
Planet’s research staff. The contribution was received in August of 2020, and the computers were acquired in
January of 2021. For the year ended December 31, 2020, the P500,000 contribution should be reported by
Save the Planet on its
a. Statement of activities as unrestricted revenue
b. Statement of activities as deferred revenue
c. Statement of activities as temporarily restricted revenue
d. Statement of financial position as deferred revenue

15. Which of the following transactions of a private not-for-profit voluntary health and welfare organization would
increase temporarily restricted net assets on the statement of activities for the year ended June 30, 2020?
I. Received a contribution of P10,000 from a donor on May 15, 2020, who stipulated that the donation not be
spent until August of 2020
II. Spent P25,000 for fund-raising on June 20, 2020. The amount expended came from a P25,000
contribution on March 12, 2020 The donor stipulated that the contribution be used for fund-raising
activities
a. Both I and II b. Neither I nor II c. I only d. II only