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BSA 26C > Chapter 16 and 24 > Flashcards

Chapter 16 and 24 Flashcards

1
Q

Which of the following contribution are credited directly to the entity’s net assets (equity) section of the balance sheet when received?

a. Contribution of capital assets.
b. Contribution that create endowment (permanent).
c. Contribution that create temporary endowments.
d. Contribution to services that enhance nonfinancial assets.
e. None of the above

A

None of the above

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2
Q

A nonprofit organization’s restricted fund typically is established in rationale to:

a. A resolution of the organization’s board of trustees
b. Some other transaction or event
c. Provision of a contribution to the organization
d. A mandate of governmental agency

A

Provision of a contribution to the organization

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3
Q

Which of the following contributed services are not recognized in the financial statement?

a. Contributed services that enhance nonfinancial assets.
b. Contributed services that create nonfinancial assets.
c. Contributed services that are performed by persons having specialized skills.
d. Contributed services performed by persons not having specializes skills.
e. None of the above

A

Contributed services performed by persons not having specializes skills.

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4
Q

Donor-restricted contributions are recognized in the statements

a. When collected.
b. When received.
c. When restriction expire.
d. When donation stipulated by the donor are fulfilled
e. None of the above

A

When received.

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5
Q

Volunteers constructed an addition to an existing building owned by a nonprofit organization. The cost of materials was P250,000 (donated by local firms). The value of the labor hours (based on prevailing hourly rates for carpenters and electricians) was P160,000. An outside contractor offered to do the work for P460,000. At the completion of the job, the country property tax assessor assigned a value of P480,000 to the addition. How much should be reported in the financial statements for donated services? Choose the best answer.

a. P480,000
b. P460,000
c. P460,000 or P480,000, at the option of the NPE
d. P410,000 or P480,000, at the option of the NPE
e. P410,000

A

P410,000 or P480,000, at the option of the NPE

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6
Q

One characteristic of nonprofit organizations that is comparable with characteristics of governmental entities is:

a. Stewardship of resources
b. Governance by board of directors
c. Measurements of cost expirations
d. None of the forgoing

A

Stewardship of resources

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7
Q

Under SUMC Hospital’s established rate structure, the hospital would have earned patient service revenue of P22,500,000 for the year ended December 31, 2021. However, P16,875,000 was collected because of charity allowances of P3,750,000 and discounts of P1,875,000 to third-party payors. For the year ended December 31, 2021, what amount should CPU record as net patient service revenue?

a. P18,750,000
b. P16,875,000
c. P20,625,000
d. P22,500,000

A

P16,875,000

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8
Q

The fair value of a contribution cannot be determined by using

a. Market quotations
b. Appraisals.
c. Present-value calculations of expected future cash flows
d. House donated multiplied by the standard billing rate per hour.
e. None of the above.

A

None of the above.

The fair value of a contribution can be determined using:
a. Market quotations
b. Appraisals.
c. Present-value calculations of expected future cash flows
d. House donated multiplied by the standard billing rate per hour.

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9
Q

Contribution are reported in the statement of activities using all the following categories except

a. Permanently restricted.
b. Board restricted.
c. Temporarily restricted.
d. Unrestricted.

A

Board restricted

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10
Q

Which of the following contributions are credited to a Deferred Revenues account until spending occurs?

a. Contributions restricted as to purpose
b. Contributions restricted as to time period.
c. Contribution restricted as to both purpose and time period.
d. Contribution to be spent on acquiring capital assets.
e. None of the above.

A

None of the above.

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11
Q

Which of the following contributions are not recognized in the statement of activities?

a. Contribution that create endowments.
b. Contribution that create temporary endowments.
c. Contribution of capital assets.
d. Contribution of services that enhance nonfinancial assets.
e. None of the above

A

None of the above

Recognized in the statement of activities:
a. Contribution that create endowments.
b. Contribution that create temporary endowments.
c. Contribution of capital assets.
d. Contribution of services that enhance nonfinancial assets.

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12
Q

Which of the following contributions are recognized in the statement of activities?

a. Contributions of services that enhance financial assets.
b. Contributions of services that enhance nonfinancial assets.
c. Contributions of services that enhance financial assets and nonfinancial assets.
d. Contribution of services, regardless of whether they enhance assets or who performs them
e. Contribution of services, regardless of whether they enhance assets or who performs them.

A

Contributions of services that enhance nonfinancial assets.

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13
Q

Contributions of services that enhance nonfinancial assets should not be recognized in the Statement of Activities.

A

FALSE

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14
Q

Dumaguete City paid rent for three (3) years to be used as motor pool. The entry is to debit Prepaid Rent and credit Cash (MDS).

A

TRUE

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15
Q

In general, contributions are recognized when received.

A

TRUE

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16
Q

Only voluntary health and welfare organizations must show expenses by function in the Statement of Activities.

A

TRUE

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17
Q

The Notice of Cash Allocation (NCA) is issued by the Commission on Audit to offices or operating units authorizing them to pay operating expenses and acquisition of PPE, and others.

A

FALSE.

It is issued by the Department of Budget and Management.

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18
Q

The statement of financial position must show total assets, total liabilities, and total net assets (equity).

A

TRUE

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19
Q

Contributed services that create or enhance a nonfinancial asset must be recorded at the fair value of the asset created or enhanced.

A

TRUE

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20
Q

The entry of the government agency when the agency received allotment from the Department of Budget and Management (DBM) will be a debit to Cash (MDS), credit to Appropriations allotted.

A

FALSE.

Posting to the appropriate RAPAL etc.

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21
Q

When the government agency received the General Appropriations Act (GAA) for the allotment for the year, the entry is debit Cash (MDS) and credit Subsidy from National Government

A

FALSE.

Posting to the appropriate RAPAL

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22
Q

Income earned on endowments (other than term endowments) is reported as increasing permanently restricted net assets

A

FALSE.

Temporarily restricted net assets

23
Q

Agency ABC establishes a petty cash fund for Maintenance and Other Operating Expenses (MOOE). The entry includes a debit to MOOE.

A

FALSE.

Debit to Petty Cash Fund
Credit Cash-MDS, Regular

24
Q

Contributions that create endowments are classified as increasing permanently restricted net assets.

A

FALSE

Increasing temporarily restricted net assets

25
Q

Contributions that create endowments are classified as increasing permanently restricted net assets.

A

FALSE

Increasing temporarily restricted net assets

26
Q

The definition of contributions includes conditional promises to give.

A

FALSE

Contributions are unconditional transfers of cash or other resources

27
Q

Contributions with future payment dates would usually be classified as increasing permanently restricted net assets.

A

FALSE

Increasing temporarily restricted net assets

28
Q

A purpose restriction is deemed to have expired when an expense has been incurred for that purpose

A

TRUE

29
Q

Contributed works of art, historical treasures, and similar assets are called?

A

Collection items

30
Q

Encompasses the process of analyzing, recording, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government fund and property and interpreting the result thereof

A

Government accounting

31
Q

Term endowment is classified as?

A

Temporarily restricted

32
Q

These are unconditional transfers of cash or other assets.

A

Contributions

33
Q

Refers to an authorization, made by law or other legislative enactment, directing the payment of goods and services out of government funds under specified conditions or for special purposes.

A

Appropriation

34
Q

The major revenue account for a hospital

A

Patient service revenues

35
Q

Refers to any department, bureau or office of the national government, or any of its branches and instrumentalities, or any political subdivision, as well as any GOCC’s, including its subsidiaries, or other self-governing board or commission of the government.

A

Agency

36
Q

It is the financial plan of a government for a given period, usually for a fiscal year.

A

Government budget

37
Q

Means a basis of accounting under which transactions and other events are recognized when they occur (and not only when cash or its equivalent is received or paid)

A

Accrual basis

38
Q

Are entities that promote humanitarian activities such as public health clinics, homeless shelters, the cure of a particular disease, and the like

A

Voluntary Health and Welfare Organizations

39
Q

This is a commitment that encompasses possible future liabilities based on current contractual agreement.

A

Obligation

40
Q

Are unrestricted fund used to account for the day-to-day operations of a health care provider.

A

General Fund

41
Q

The manual that presents the basic policies and procedures; the new coding system; the accounting systems, books, registries, records, forms, reports and financial statements to be adopted by the national government agencies.

A

New Government Accounting System (NGAS) Manual

42
Q

The major revenue account for a college or university.

A

Educational and general revenues

43
Q

This is an authorization issued by the Department of Budget and Management (DBM) to incur obligations for specific amounts contained in a legislative appropriation in the form of budget release documents.

A

Allotment

44
Q

Collections which are remitted to other organizations of a university/college are recorded as a/an

A

Agency Fund

45
Q

Hospital or healthcare’s land, buildings and equipment are recorded as a/an:

A

General Fund

46
Q

Funds generated from day-to-day operations of a hospital.

A

General Fund

47
Q

Collections which are remitted to other organizations of other not-for-profit organizations are recorded as a/an:

A

Custodian Fund

48
Q

Restricted funds generated from day-to-day operations of a university.

A

Current fund-restricted

49
Q

Restricted funds generated from day-to-day operations of a university.

A

Current fund-restricted

50
Q

Funds generated from day-to-day operations of a university

A

Current fund-unrestricted

51
Q

Loans to students for universities/colleges are recorded as a/an:

A

Loan fund

52
Q

Restricted funds generated from day-to-day operations of a hospital.

A

Specific purpose fund

53
Q

Funds where principal is kept intact and income is used for current operations of a university/college.

A

Endowment fund

BSA 26C (14 decks)

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