ACCO 30033 QUIZ 4-Non Profit Organizations 4 Choose the best answer. Points: 35/42 1. Account debited when reducing patient billings caused by recognition of charity patients. * (1/1 Point) Contractual Adjustment Patient Service Revenue ~ Accounts Receivable Allowance for Uncollectible Accounts x 2. Pledges, which are restricted by donors, are reported as increases in restricted net assets in the statement of activities of an NPO: * (0/1 Point) when the pledges are made by the donors. v upon receipt of the amount pledged.when the cash received from pledges is expended in accordance with the donor's wishes. upon transfer of the fund to unrestricted net assets. 3. An entity whose primary source of revenue is made up of contributions. * (1/1 Point) NPOs v LGUs NGAs Goccs 4, Government grants that require performance by the not for profit organization will be accounted for as: * (1/1 Point) endowment temporarily restricted revenue Unrestricted revenue refundable deposits until earned, then unrestricted revenue 5. donation was received by an NPO specifically for research and development. The entry to record the donation is credited to * (1/1 Point) Contributions Revenue-Unrestricted Contributions Revenue- Restricted Net Assets with Donor Restriction Unrestricted Net Assets6.A contribution is given without donor restrictions. Which fund group would this be recorded? * (1/1 Point) Current unrestricted fund ~ Current restricted fund Loan fund Endowment fund 7. The type of fund in a non-profit university which is intended for property plant and equipment: * (1/1 Point) Endowment fund Plant fund ~ Trust fund Trustee endowment fund 8. The Contractual Adjustment ledger account of a non-profit hospital is: * (1/1 Point) ‘An expense account A loss account A contra revenue account An asset account9. With respect to a non-profit organization's payments to beneficiaries of annuity funds and life income funds: * (0/1 Point) Annuity fund payments are fixed in amount; life income fund payments vary in amount. ~ Annuity fund payments vary in amount; life income fund payments are fixed in amount. Payments from both annuity funds and life income funds are fixed in amount. Payments from both annuity funds and life income funds vary in amount. 10. One of the characteristics of non-profit organizations that is comparable with characteristics of governmental entities is: * (1/1 Point) Stewardship of resources Measurement of cost expirations Governance by board of directors none of the given 11. The fund of a non-profit university intended for loans to students, faculty and staff is a(n): * (1/1 Point) Annuity fund Life income fund Loan fund Endowment fund 12. The type of fund in a non-profit university coming from outside parties on condition that they not be spent, but invested to yield earnings which may be spent. * (1/1 Point)Endowment fund Trust fund Plant fund Agency fund 13. Courtesy Discount and Allowances of a non-profit hospital is: * (1/1 Point) An Expense account ‘Accontra revenue account A loss account An asset account 14, Unrestricted current fund of a private university designated by the governing board for a specific purpose in the future should be reported as part of: * (1/1 Point) Board designated net assets Unrestricted net assets. v Restricted net assets Term endowments 15. Statement 1 ASU 2016-14 is an enhancement, not an overhaul, of existing guidance. Statement 2 ASU 2016-14 limits the presentation of cash flow statements to the direct method only. * (1/1 Point) Only statement 1 is correct. v Only statement 2 is correct.Both statements are correct. Both statements are incorrect. 16. Bantay Kabataan Organization, a non-profit organization, received the following donations during the period: + January 01, 2020: Land with a fair value of P4,000,000 to be used at the discretion of the BantayKabataan Organization. + February 15, 2020: Cash of P8,000,000 restricted for the acquisition of a truck. The truck will be used in the Bantay Kabataan Organization's outreach programs. + March 01, 2020: Investment in equity securities with a fair value of P2,000,000 to be held indefinitely. Only the investment income shall be used by the organization in its current operations. + May 01, 2020:Lakbay Aral Members from various universities contributed services in a tree-planting activity initiated by Bantay Kabataan Organization. Although the volunteers rendered their services for free, the organization estimates that the fair value of these services would amount to P20,000. + June 30, 2020: The Bantay Kabataan Organization acquired a truck for 8,000,000 and received dividends of P240,000 from the equity securities. How much is the balance of the net assets without donor restrictions on December 31, 2020? * (2/2 Points) 4,240,000 ~ 4,000,000 6,020,000 4,020,00017. Bantay Kabataan Organization, a non-profit organization, received the following donations during the period: + January 01, 2020: Land with a fair value of P4,000,000 to be used at the discretion of the BantayKabataan Organization. . February 15, 2020: Cash of P8,000,000 restricted for the acquisition of a truck. The truck will be used in the Bantay Kabataan Organization's outreach programs. + March 01, 2020: Investment in equity securities with a fair value of P2,000,000 to be held indefinitely. Only the investment income shall be used by the organization in its current operations. + May 01, 2020:Lakbay Aral Members from various universities contributed services in a tree-planting activity initiated by Bantay Kabataan Organization. Although the volunteers rendered their services for free, the organization estimates that the fair value of these services would amount to P20,000. + June 30, 2020: The Bantay Kabataan Organization acquired a truck for 8,000,000 and received dividends of P240,000 from the equity securities. How much is the balance of the net assets with donor restrictions on December 31, 2020? * (2/2 Points) 2,240,000 6,000,000 10,000,000 2,000,000 ~ x 18.On March 5, 2020, a non-profit organization received unrestricted cash contributions of P1,000,000 and restricted cash contributions of P600,000. All of the restricted contributions were restricted by the donor for the purchase of equipment. During the year, equipment costing P200,000 was acquired with the restricted contributions How much is the increase (decrease) in net assets with donor restrictions during the year? * (0/1 Point) (400,000)400,000 v 600,000 (200,000) 19."No More Worries’ is a private not-for-profit healthcare organization offering services for a fee. In the first quarter of 2021, the NPO rendered health services of 3,000,000 to patients. Of this amount 60% will be collected, 10% are courtesy discounts, 20% are contractual adjustments and the remaining 10% is estimated to be uncollectible. How much is the net patient service revenue to be recognized by "No More Worries"? * (2/2 Points) 1,800,000 2,100,000 ~ 2,700,000 3,000,000 20.A non-profit Community Hospital patient service records for June 2020 include the following amounts: Gross Patient Service Revenue (before charity care and contractual adjustments) 400,000 Charity care for indigent patients 40,000 Contractual Adjustments 80,000 Provision for doubtful accounts 40,000 How much is the net patient service revenue? * (2/2 Points) 320,000 360,000 240,000 280,000 v21.A non-profit university had the following transactions in 2020: a. Student tuition and other fees of P5,500,000 were assessed, of which P4,500,000 has been collected and P100,000 is estimated to be uncollectible. b. Alumni association of the university donated P1,000,000 to be used only for faculty development. €. Another P1,000,000 was received from a donor, who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. Earnings from these investments for the year ended December 31, 2020, amounted to P100,000. d. Revenue billed for dormitories (an auxiliary enterprise) is P500,000, of which P150,000 is not yet received. e. Expenses are paid and assigned to the following: Instruction-P3,300,000; Research-P200,000; Student services-P100,000. f Expenses related to Auxiliary enterprises of P100,000 were paid. How much is the excess of income over expenses under educational and general revenue? * (2/2 Points) 1,800,000 1,900,000 ~ 900,000 800,00022. A non-profit university had the following transactions in 2020: a. Student tuition and other fees of P5,500,000 were assessed, of which 4,500,000 has been collected and P100,000 is estimated to be uncollectible. b. Alumni association of the university donated P1,000,000 to be used only for faculty development. c. Another P1,000,000 was received from a donor, who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. Earnings from these investments for the year ended December 31, 2020, amounted to P100,000. d. Revenue billed for dormitories (an auxiliary enterprise) is P500,000, of which P'150,000 is not yet received. e. Expenses are paid and assigned to the following: Instruction-P3,300,000; Research-P200,000; Student services-P100,000, Expenses related to Auxiliary enterprises of P100,000 were paid. How much is the excess of income over expenses under “auxiliary enterprises"? * (2/2 Points) 350,000 250,000 400,000 v 500,00023. non-profit university had the following transactions in 2020: a. Student tuition and other fees of P5,500,000 were assessed, of which P4,500,000 has been collected and P100,000 is estimated to be uncollectible. b. Alumni association of the university donated P1,000,000 to be used only for faculty development. <. Another P1,000,000 was received from a donor, who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. Earnings from these investments for the year ended December 31, 2020, amounted to P100,000. d. Revenue billed for dormitories (an auxiliary enterprise) is P500,000, of which P150,000 is not yet received. e. Expenses are paid and assigned to the following: Instruction-P3,300,000; Research-P200,000; Student services-P100,000, f. Expenses related to Auxiliary enterprises of P100,000 were paid. How much is the increase(decrease) in restricted net assets on the 2020 statement of activities? * (0/2 Points) 2,100,000 ~ 1,100,000 2,000,000 1,900,00024, A not for profit organization had the following classes of net assets on January 2, 2020: Net Assets- without donor restrictions- P2,000,000; Net Assets-with donor restriction-P5,500,000; During the year ended December 31, 2020, the following transactions occurred: 1. Received unconditional pledges of P1,350,000. Half of the amount was received during the year and the balance payable in 2021 2. Received P500,000 of cash donations which were restricted for research activities. During the year ended December 31, 2020, P100,000 were expended for research. 3. Received P300,000 dividends and interest income earned on restricted contributions. There were no restrictions imposed on the income and interest received. 4. Received conditional pledges from a donor, P1,500,000. As of December 31, 2020, the conditions were not satisfied yet by the NPO. 5. Expenses paid, P500,000 (inclusive of P100,000 in no. 2) How much is the increase (decrease) in the unrestricted net assets in the 2020 statement of activities? * (0/2 Points) 975,000 1,075,000 575,000 v 2,575,00025. A not for profit organization had the following classes of net assets on January 2, 2020: Net Assets-without donor restrictions-P2,000,000; Net Assets-with donor restrictions-P5,500,000; During the year ended December 31, 2020, the following transactions occurred: 1. Received unconditional pledges of P1,350,000. Half of the amount was received during the year and the balance payable in 2021. 2. Received P500,000 of cash donations which were restricted for research activities. During the year ended December 31, 2020, P100,000 were expended for research. 3. — Received P300,000 dividends and interest income earned on restricted contributions. There were no restrictions imposed on the income and interest received. 4, Received conditional pledges from a donor, P1,500,000. As of December 31, 2020, the conditions were not satisfied yet by the NPO. 5. Expenses paid, P500,000 (inclusive of P100,000 in no. 2) How much is the balance of Restricted Net Assets on December 31, 2020? * (2/2 Points) 4,075,000 3,575,000 6,575,000 v 3,675,00026. A not for profit organization had the following classes of net assets on January 2, 2020: Net Assets-without donor restrictions-P2,000,000; Net Assets-with donor restrictions-P5,500,000; During the year ended December 31, 2020, the following transactions occurred: 1. Received unconditional pledges of P1,350,000. Half of the amount was received during the year and the balance payable in 2021. 2. Received P500,000 of cash donations which were restricted for research activities. During the year ended December 31, 2020, P100,000 were expended for research. 3. — Received P300,000 dividends and interest income earned on restricted contributions. There were no restrictions imposed on the income and interest received. 4, Received conditional pledges from a donor, P1,500,000. As of December 31, 2020, the conditions were not satisfied yet by the NPO. 5. Expenses paid, P500,000 (inclusive of P100,000 in no. 2) How much is the balance of net assets for the year ended December 31, 2020? * (2/2 Points) 1,650,000 10,650,000 3,150,000 9,150,000 v27.A not for profit organization had the following classes of net assets on January 2, 2020: _Net Assets-without donor restrictions-P2,000,000; Net Assets-with donor restrictions-P5,500,000; During the year ended December 31, 2020, the following transactions occurred: 1. Received unconditional pledges of P1,350,000. Half of the amount was received during the year and the balance payable in 2021. 2. Received P500,000 of cash donations which were restricted for research activities. During the year ended December 31, 2020, P100,000 were expended for research. 3. — Received P300,000 dividends and interest income earned on restricted contributions. There were no restrictions imposed on the income and interest received. 4, Received conditional pledges from a donor, P1,500,000. As of December 31, 2020, the conditions were not satisfied yet by the NPO. 5. Expenses paid, P500,000 (inclusive of P100,000 in no. 2) How much is the reclassification on the statement of activities? * (2/2 Points) 100,000 500,000 600,000 400,000 28.A statement that reports revenues, gains, expenses, losses, and changes in the two categories of net assets. * (1/1 Point) Statement of Operations Statement of Financial Position Statement of Activities v Statement of Cash Flows29, On June 30, 2020, an alumnus of a non-profit university contributed P1,500,000 with the stipulation that the donation is to be used for faculty development for 2021. In 2021, the university spent all the donations for faculty development. For the year ended December 31, 2021, what was the effect of the donation on unrestricted net assets? * (1/1 Point) increase Decrease no effect 30. During the fiscal year ended June 30, 2020, a private, not-for-profit hospital, acquired equipment, with the cash contributed by donors who restricted their contributions for this purpose. On the hospital's statement of cash flows for the year ended June 30, 2020, the equipment acquisition should be reported in which of the following sections? * (1/1 Point) Operating Financing Investing v 31.In accordance with FASB 116, contributions of services are recognized as increases. in unrestricted net assets by a private, not for profit entity if which of the following criteria are satisfied? |. The services received create or enhance nonfinancial assets. Il. The services require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donations. IIl The services will be performed within the current fiscal year. * (1/1 Point) lorll v Horii Wor il32, Please choose your section. * BSA 3-1 BSA 3-4 BSA 3-6 BSMA 3-5 BSMA 3-6 ‘This content is created by the owner of the form. The data you submit will be sent to the form owner. 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