SEMIS

Question 1
Taking care of admissions, records, health, counseling, and publications are among the
responsibilities of a Private Not-for-Profit University in the aspect of:
Response: Student services
Correct answer: Student services
Score: 1 out of 1 Yes

Question 2
A statement of financial position, which reports unrestricted, temporarily restricted and
permanently restricted net assets, is required for which one of the following
organizations?

Statement I: A public college/university

Statement II: Private, not-for-profit hospitals
Response: Both I and II
Correct answer: II only
Score: 0 out of 1 No

Question 3
Term endowment funds represent temporarily restricted funds.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 4
Gifts, donations, or contributions may happen during reciprocal transfers.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 5
Save the Calumpang River, a private non-profit research organization, received a
P1,000,000 contribution from Mr. Suave. Mr. Suave stipulated that his donation be used
to purchase new computers for Save the Calumpang River’s research staff. The
contribution was received in September of 2022, and computers were acquired in
January of 2023. The year ended December 31, 2022, the P1,000,000 contribution
should be reported by the Save the Calumpang River on its:
Response: Statement of activities as temporarily restricted revenue.
Correct answer: Statement of activities as temporarily restricted revenue.
Score: 1 out of 1 Yes

Question 6
An unconditional promise to give is also referred to as _____
Response: pledge
Correct answer: pledge
Score: 1 out of 1 Yes

Question 7
Quasi-endowment funds are established by the donee, hence are generally unrestricted
and expendable any time.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 8
Ayuda, a private not-for-profit voluntary health and welfare organization, received the
following contributions in 2030:

Item I: P500,000 from donors who stipulated that the money may not be spent until
2031.
Item II: P200,000 from donors who stipulated that the contributions be used for the
acquisition of computers, none of which was acquired in 2030.

Which of the following shall be reported as temporarily restricted contribution?

Response: Both I and II
Correct answer: Both I and II
Score: 1 out of 1 Yes

Question 9
Which among the following is considered as among the non-operating revenues of a
private not-for-profit university?
Response: Dividends from term endowment
Correct answer: Dividends from term endowment
Score: 1 out of 1 Yes

Question 10
Quasi-endowment funds represent unrestricted funds that may be subject to externally
imposed restrictions
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 11
Statement 1: Contribution and net assets are restricted by the not-for-profit
organization’s board of directors.
Statement 2: The notes to the financial statements are an integral part of the financial
statements.
Response: Statement 1 is incorrect; Statement 2 is correct
Correct answer: Statement 1 is incorrect; Statement 2 is correct
Score: 1 out of 1 Yes

Question 12
A term endowment is an example of a _____ restricted fund
Response: temporarily
Correct answer: Temporarily, Temporary
Score: 1 out of 1 Yes

Question 13
Donations or contributions are recognized when received.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 14
The Notes to the Financial Statements provides disclosure information hence an
integral part of NPE’s financial reporting requirements.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 15
Private not-for-profit entities may be allowed to earn profits in the conduct of their
activities.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 16
Funds or contributions having donor-imposed restrictions may be altered or changed by
the management especially if the purpose of such alterations would be for the better
benefit of the donee.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 17
The statement of activities provides for the different flow of funds in terms of operating,
financing, and investing activities
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 18
The definition of contributions may include those conditional promises to give.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 19
Community Pantry is a Not-for-Profit Entity funded by the contributions of the
Kumintang Ibaba constituents. In 2021, unconditional promises to give in the amount of
P800,000 were received, half of which was payable in 2021 with the other half payable
in 2022 for use in 2022. It was estimated that 10% of these pledges would be
uncollectible. How much should the NPE report as net contribution revenue for 2022
with respect to the pledge?
Response: P0 (zero)
Correct answer: P0 (zero)
Score: 1 out of 1 Yes

Question 20
Under accrual accounting for private not-for-profit universities, revenues from student
tuition fees are recognized only upon collection.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 21
An unconditional promise to donate may not be in writing to qualify as a recognizable
contribution.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 22
The responsibility of private not-for-profit university to establish goodwill to its alumni
and the community is referred to as:
Response: Public relations
Correct answer: Public relations
Score: 1 out of 1 Yes

Question 23
NPE’s merely act as custodians for _____ funds
Response: agency
Correct answer: Agency
Score: 1 out of 1 Yes

Question 24
The accounting equation of a not-for-profit organization is Assets = Liabilities + ?
Response: Net Assets
Correct answer: Net Assets
Score: 1 out of 1 Yes
Question 25
Which among the following is considered as among the operating revenues of a private
not-for-profit university?
Response: Governmental grants
Correct answer: Governmental grants
Score: 1 out of 1 Yes

Question 26
A quasi-endowment fund is an example of a _____ fund
Response: unrestricted
Correct answer: Unrestricted, Expendable
Score: 1 out of 1 Yes

Question 27
_____ funds are resources that are restricted or specifically designated for the
construction, renovation, and acquisition of capital assets.
Response: Plant
Correct answer: Plant
Score: 1 out of 1 Yes

Question 28
The other term for a pure or regular endowment fund is permanent.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 29
Donations or contributions subject to conditions stipulated by the donor are initially
recognized in the books as _____
Response: liability
Correct answer: Liabilities, deferred revenues, liability, unearned revenues, unearned
revenue, deferred revenue
Score: 1 out of 1 Yes

Question 30
 Non-cash asset donations are recognized and measured at fair value upon receipt from
the donee.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 31
An NPE College providing instruction and public service is fulfilling its responsibility in
the aspect of:
Response: Academic
Correct answer: Academic
Score: 1 out of 1 Yes

Question 32
The statement of financial position provides the information on the NPE’s net assets
which are further classified as unrestricted, temporarily, or permanently restricted net
assets.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 33
When unrestricted net assets carry management-imposed restrictions, those are
properly classified as temporarily restricted net assets.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 34
The most common grouping or classification of expenses that a private not-for-profit
university may use is by "function" where expenses under Sales and Administrative
functions are separately presented.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 35
 Giant Foundation, a private not-for-profit organization, had the following cash
contributions and expenditures in 2030:

Unrestricted cash contributions of P1,000,000

Cash Contributions of P400,000 restricted by the donor to the acquisition of equipment
Cash expenditures of P400,000 to acquire equipment with the donation in the above
item

Marie’s statement of cash flows should include which of the following amounts?
Response: Operating: 1,000,000, Investing: (400,000), Financing: 400,000
Correct answer: Operating: 1,000,000, Investing: (400,000), Financing: 400,000
Score: 1 out of 1 Yes

Question 36
Regular endowment funds represent permanently restricted funds, both principal and
interests.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 37
Private not-for-profit colleges and universities may prepare Statement of Functional
Expenses although they are not required to submit such.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 38
Among the different types of Private Not-for-Profit Entities, it is the Voluntary Health and
Welfare Organizations that are solely required to prepare for the _____ as a mandatory
reporting requirement
Response: statement of functional expenses
Correct answer: Statement of Functional Expenses
Score: 1 out of 1 Yes

Question 39
The other term for donor-imposed restrictions is externally imposed restrictions
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 40
In general, and if the requirement is silent, all interest income or dividends from all
types of endowment funds are expendable hence presented under financing activities in
the statement of cash flows.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 41
The minimum wage is the basis to record contributed services.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 42
Scholarships that require employee-type work of services from the students are
relevant in the computation of net tuition fee revenue.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 43
The primary reason for Not-for-Profit Entity’s existence is to provide services or welfare
to the community or members, profits earned if any would be only incidental.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 44
Income earned on endowments (other than term endowments) is reported as
increasing permanently restricted net assets.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 45
A not-for-profit organization’s assets that have been designated by its board of directors
for a specific project should be reported on the external financial statements as:
Response: Unrestricted net assets
Correct answer: Unrestricted net assets
Score: 1 out of 1 Yes

Question 46
Statement 1: The two types of restrictions on contributions that are classified as
temporarily restricted are purpose and time
Statement 2: Assets released from restrictions will involve two classes of net assets
Response: Both statements are correct
Correct answer: Both statements are correct
Score: 1 out of 1 Yes

Question 47
For the year ended June 30, 2021, the Compassionate University, a Private not-for-
profit university assessed its students a total of P2,000,000 for tuition and fees. Included
in this amount was P150,000 of tuition remissions given to graduate teaching assistants
and P75,000 of scholarships awarded to undergraduate students for which no service
was rendered. Tuition and fees totaling P1,775,000 were collected during the year
ended June 30, 2021. What amount should be reported in the unrestricted fund as net
revenue from tuition and fees for the year ended June 30, 2021?
Response: P1,925,000
Correct answer: P1,925,000
Score: 1 out of 1 Yes

Question 48
Interests or dividend income from endowment funds are generally classified as _____
funds
Response: expendable
Correct answer: unrestricted, expendable
Score: 1 out of 1 Yes

Question 49
 Unrestricted donations or contributions are correctly classified as funds inflow from
_____ activities
Response: operating
Correct answer: Operating
Score: 1 out of 1 Yes

Question 50
A pure endowment is an example of a _____ restricted fund
Response: permanently
Correct answer: Permanently, Permanent
Score: 1 out of 1
COOPERATIVES

Question 1
A financial services cooperative is required to secure a secondary license from the
Bangko Sentral ng Pilipinas
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 2
The credit committee in a cooperative is responsible for resolving conflicts concerning
cooperative issues that may divide the membership.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 3
A cooperative has the exclusive use of its registered name
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 4
A _____ cooperative promotes and undertakes savings and lending services among its
members
Response: credit
Correct answer: Credit
Score: 1 out of 1 Yes

Question 5
_____ cooperative is one that engages in the supply of production inputs to members
and markets their products
Response: Marketing
Correct answer: Marketing
Score: 1 out of 1 Yes

Question 6
Members of the cooperative have _____ voting rights
Response: equal
Correct answer: equal
Score: 1 out of 1 Yes

Question 7
Associate and regular members of a cooperative enjoy the same rights and privileges
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 8
_____ and open membership is a cooperative principle that seeks to welcome all
persons into the cooperative organization provided they are willing to accept the
responsibilities of the membership
Response: Voluntary
Correct answer: Voluntary
Score: 1 out of 1 Yes

Question 9
Cooperatives are required to comply with the basic requirements of a business
enterprise
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 10
Cooperative acquires juridical personality and therefore can sue and may be sued.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 11
In the organizational chart of cooperatives, the different committees would normally be
under the responsibility of the Board of Trustees.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 12
Associate members of the cooperative generally have no right to vote or be voted upon
however shall be entitled to such rights as the by-laws of the cooperative may provide.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 13
_____ are directly accountable to the membership of cooperatives
Response: Directors
Correct answer: Board of directors, Officers
Score: 0 out of 1 No

Question 14
Republic Act 9520 is also known as the “Philippine Cooperative Code of 2008”
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 15
Cooperatives are permitted to organize and operate schools.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 16
A cooperative is an autonomous and duly registered association of persons, with a
common bond of _____
Response: interest
Correct answer: Interest
Score: 1 out of 1 Yes

Question 17
_____ is a cooperative principle that promotes the sustainable development of their
communities through policies approved by their members.
Response: Concern for community
Correct answer: Concern for community
Score: 1 out of 1 Yes

Question 18
Among the powers and capacities of cooperatives is to initially have a succession term
of 50 years.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 19
The board of directors is the most powerful and controlling group of members in a
cooperative
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 20
The primary purpose of a _____ cooperative is to procure and distribute commodities to
members and non-members.
Response: consumers
Correct answer: Consumer, Consumers
Score: 1 out of 1 Yes

Question 21
The primary objective of every cooperative is to help improve the quality of life of its
members.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 22
Cooperatives are autonomous business entities.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 23
Cooperatives as business entities should adhere to local _____
Response: laws
Correct answer: Laws, Law
Score: 1 out of 1 Yes

Question 24
Cooperatives allot _____ % of its net surplus for education and training
Response: 10
Correct answer: 10, Ten
Score: 1 out of 1 Yes

Question 25
A cooperative is a business organization owned and operated by a group of individuals
for their benefit.
Response: True
Correct answer: True
Score: 1 out of 1
NPE

Question 1
_____ are discounts arranged with third-party payors that frequently have agreements
to reimburse at less-than-established rates
Response: Contractual adjustments
Correct answer: Contractual adjustment, contractual adjustments
Score: 1 out of 1 Yes

Question 2
Permanently restricted funds with donor-imposed restrictions are presented under
financing activities in the Statement of activities.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 3
A voluntary health and welfare organization receives P32,000 in cash from solicitations
made in the local community. The organization receives an additional P1,500 from
members in payment of annual dues. Members are assumed to receive benefits
roughly equal in value to the amount of dues paid. How should this money be
recorded?
Response:
Public support of P32,000 and revenue of P1,500
Correct answer:
Public support of P32,000 and revenue of P1,500
Score: 2 out of 2 Yes

Question 4
During the fiscal year ended June 30, 2020, Caritas a voluntary health and welfare
organization, received unrestricted cash contributions of P500,000 and temporarily
restricted cash contributions of P300,000. All of the temporarily restricted contributions
were restricted by the donors for equipment acquisitions. During the year ended June
30, 2020, equipment costing P250,000 was acquired with the restricted contributions.
As a result of these two (2) contributions, Caritas’ statement of cash flows, prepared for
the year ended June 30, 2020 would report an increase in net cash provided by
operating activities of:
Response:
 P500,000
Correct answer:
P500,000
Score: 2 out of 2 Yes

Question 5
For Health Care Providers – Hospitals, Premium revenues/fees are also known as
subscriber fees or _____
Response: capitation fees
Correct answer: Capitation fee, capitation fees
Score: 1 out of 1 Yes

Question 6
Contributions of cash and other assets are recognized when received and credited to
contributions revenue whether restricted or unrestricted.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 7
_____ consists of administrative expenses and fund-raising costs.
Response: Supporting services
Correct answer: Supporting services, supporting service
Score: 1 out of 1 Yes

Question 8
An endowment fund is used to account for assets held by a nonprofit organization as a
custodian, accordingly the assets are disbursed only as instructed by their owner.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 9
All unrestricted funds contain no donor-imposed stipulations
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 10
A contributed asset is recognized as revenue by a not-for-profit organization
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 11
Contributed services and facilities are recognized both as assets and contributions
revenue, net of expense.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 12
The statement of functional expenses provides a detailed schedule of expenses by
function and by _____.
Response: natural class
Correct answer: Object, Objects
Score: 0 out of 1 No

Question 13
Nonprofit organizations issue a statement of activities
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 14
A voluntary health and welfare organization has the following expenditures:
Research to cure
P60,000
disease
Fund-raising costs P70,000
Work to help disabled P40,000
Administrative P90,000
 salaries

How should the organization report these items?

Response:
Program service expenses of P100,000 and supporting service expenses of
P160,000
Correct answer:
Program service expenses of P100,000 and supporting service expenses of
P160,000
Score: 2 out of 2 Yes

Question 15
In Voluntary Health and Welfare Organizations, _____ represents inflows of resources
resulting from a charge for service from financial activities or from other exchange
transactions
Response: revenues
Correct answer: Revenue, revenues
Score: 1 out of 1 Yes

Question 16
_____ care provides free of charge services to patients who qualify under the hospitals
charity care policy.
Response: Charity
Correct answer: Charity, charity service
Score: 1 out of 1 Yes

Question 17
The statement of financial position for nonprofit organization contains assets and
liabilities similar to commercial accounting
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 18
The permanently restricted section of a nonprofit organization’s net assets is set aside
by donor restrictions
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 19
_____ is the major revenue account for a Health Care Provider – Hospitals
Response: Patient service revenues
Correct answer: Patient service revenue, patient service revenues
Score: 1 out of 1 Yes

Question 20
Unconditional pledges are recognized as receivables and contributions revenue when
collected
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 21
_____ relates to the expenses incurred in providing the organization’s social service
activities.
Response: Program services
Correct answer: Program services, Program service
Score: 1 out of 1 Yes

Question 22
Depreciation expenses is not recognized by nonprofit organizations
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 23
On June 30, 2020, a voluntary health and welfare organization received pledges from
donors amounting to P50,000. The donors did not place any time or use restriction on
the amount pledged. It was estimated that 10% of the pledges would not be collected.
How should the Voluntary Health and Welfare Organization report these pledges on its
financial statements as of June 30, 2020?
Response:
 As contributions revenue-unrestricted for P45,000
Correct answer:
As contributions revenue-unrestricted for P45,000
Score: 2 out of 2 Yes

Question 24
A voluntary health and welfare organization receives a gift of new furniture having a fair
value of P2,100. The VHWO then gives the furniture to needy families following a flood.
How should the organization record the receipt and distribution of this donation?
Response:
Record public support of P2,100 and community assistance expenses of P2,100
Correct answer:
Record public support of P2,100 and community assistance expenses of P2,100
Score: 2 out of 2 Yes

Question 25
The required financial statements for nonprofit organizations include: Statement of
financial position, statement of cash flows, statement of activities and specifically for
Voluntary Health and Welfare Organizations – Statement of Functional Expenses.
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 26
Endowment fund investment revenue may be restricted or _____
Response: unrestricted
Correct answer: Unrestricted
Score: 1 out of 1 Yes

Question 27
In Voluntary Health and Welfare Organizations, _____ is the inflow of resources from
voluntary donors who receive no direct personal benefit from the organization’s usual
programs in exchange for their contributions.
Response: public support
Correct answer: Public support
Score: 1 out of 1 Yes
Question 28
The accounting period in which pledged revenues are recognized is dependent on
donor specifications
Response: True
Correct answer: True
Score: 1 out of 1 Yes

Question 29
In the statement of financial position, the balances of contractual adjustments account
and the Expenditures – Student Aid account are to be deducted from the total service
revenues to compute the net service revenue for the month.
Response: False
Correct answer: False
Score: 1 out of 1 Yes

Question 30
Financial statements of not-for-profit organization, focuses on distinctions between
current and non-current funds
Response: False
Correct answer: False
Score: 1 out of 1

Question 1
Fox foundation, a voluntary health and welfare organization, supported by contributions
from the general public, included the following costs in its statement of functional
expenses for the year ended December 31, 2020:
Php
Fund raising
1,000,000
Php
Administrative
600,000
Php
Research
200,000

Fox’s functional expenses for 2020 program services included:

Response:
 Php 200,000
Correct answer:
Php 200,000
Score: 2 out of 2 Yes

Question 2
Under USB Hospital’s established rate structure, the hospital would have earned patient
service revenues of Php 7,000,000 for the year ended December 31, 2020. However,
USB did not expect to collect this amount because of charity allowances of Php
1,000,000 and discounts of Php 500,000 to third party payers. In May 2020, USBH
purchased bandages from Ace Supply Co at a cost of Php 5,000. However, Ace notified
USBH that the invoice was being cancelled and that the bandages were being donated
to USBH. For the year ended December 31, 2020 how much should USBH record as
patient service revenues?
Response: Php 5,500,000
Correct answer: Php 5,500,000
Score: 2 out of 2 Yes

Question 3
Under KTM Hospital’s established rate structure, the hospital would have earned
patient service revenues of Php 5,000,000 for the year ended December 31, 2020.
However, KTMH did not expect to collect this amount because of contractual
adjustments of Php 500,000 to third party payors. In May 2020, KTM purchased medical
supplies from Mercury Drug at a cost of Php 1,000. However Mercury Drug notified KTM
that the invoice was being cancelled and that the medicines were being donated. On
December 31, 2020, KTMH had board-designated assets consisting of Php 40,000 and
investment of Php 700,000. For the year ended December 31, 2020, KTM should record
the donation of medicines as:
Response: An increase in unrestricted revenues, gains and other support
Correct answer: An increase in unrestricted revenues, gains and other support
Score: 2 out of 2 Yes

Question 4
A hospital has the following account balances:
Revenue from news Php
stand 50,000
Amounts charged to Php
patient 800,000
 Php
Interest income
30,000
Php
Salary expense - Nurses
100,000
Php
Contractual adjustments
110,000
Php
Undesignated gifts
80,000
Php
Bad debts
10,000

What is the hospital’s net patient service revenues?

Response:
Php 690,000
Correct answer:
Php 690,000
Score: 2 out of 2 Yes

Question 5
Under KTM Hospital’s established rate structure, the hospital would have earned
patient service revenues of Php 5,000,000 for the year ended December 31, 2020.
However, KTMH did not expect to collect this amount because of contractual
adjustments of Php 500,000 to third party payors. In May 2020, KTM purchased medical
supplies from Mercury Drug at a cost of Php 1,000. However Mercury Drug notified KTM
that the invoice was being cancelled and that the medicines were being donated. On
December 31, 2020, KTMH had board-designated assets consisting of Php 40,000 and
investment of Php 700,000. How much of KTM’s board-designated assets should be
included in unrestricted net assets?
Response: Php 740,000
Correct answer: Php 740,000
Score: 2 out of 2 Yes

Question 6
An organization of High School Seniors assists patients at ADV Hospital. These
students are volunteers who perform services that the hospital would not otherwise
provide such as wheeling patients in the park, and reading to patients. ADVH has no
employer-employee relationship with these volunteers who donated 5,000 hours of
service to ADVH in 2020. At the minimum wage, these services would amount to Php
18,750, while it is estimated that the fair value of these services was Php 25,000. In
ADVH’s 2020 statement of operations, what amount should be reported as donated
services?
Response: Php 0
Correct answer: Php 0
Score: 2 out of 2 Yes

Question 7
Get Well Hospital, operated by a religious organization, billed patients Php 4,000,000
for services rendered during the year ended June 30, 2020. The hospital realized cash
of Php 3,500,000 from the patient billings because of the following reductions: (1)
contractual adjustments of Php 140,000 granted to private insurance companies and to
the federal government; and (2) uncollectible accounts receivable of Php 360,000. On
the statement of activities prepared for the year ended June 30, 2020, Get Well Hospital
should report net patient service revenue of:
Response: Php 3,860,000
Correct answer: Php 3,860,000
Score: 2 out of 2 Yes

Question 8
Under LYS Hospital’s established rate structure, the hospital would have earned patient
service revenue of Php 9,000,000 for the year ended December 31, 2020. However,
Php 6,750,000 was collected because of charity allowances of Php 1,500,000 and
discounts of Php 750,000 to third-party payors. For the year ended December 31, 2020,
what amount should LYSH record as net patient service revenues?
Response: Php 6,750,000
Correct answer: Php 6,750,000
Score: 2 out of 2 Yes

Question 9
Under KTM Hospital’s established rate structure, the hospital would have earned
patient service revenues of Php 5,000,000 for the year ended December 31, 2020.
However, KTMH did not expect to collect this amount because of contractual
adjustments of Php 500,000 to third party payors. In May 2020, KTM purchased medical
supplies from Mercury Drug at a cost of Php 1,000. However Mercury Drug notified KTM
that the invoice was being cancelled and that the medicines were being donated. On
December 31, 2020, KTMH had board-designated assets consisting of Php 40,000 and
investment of Php 700,000. For the year ended December 31, 2020 how much should
KTM report as net patient service revenues?
Response: Php 4,500,000
Correct answer: Php 4,500,000
Score: 2 out of 2 Yes

Question 10
BMC is a voluntary health and welfare organization funded by contribution from the
general public. During 2020, unrestricted pledges of Php 800,000 were received, half of
which were payable in 2020 with the other half payable in 2021 for use in 2021. It was
estimated that 10% of these pledges would be uncollectible. How much should BMC
report as net contribution revenue for 2020 with respect to the pledges?
Response: Php 720,000
Correct answer: Php 720,000
Score: 2 out of 2