Practice NPO Acctg12 PDF
Practice NPO Acctg12 PDF
1. Saber Tooth University, a private not for profit university, had the following cash inflows
during the year ended December 31, 2018
2. Lamia Scale Park, a non- profit organization, received contributions restricted for research
totaling P100,000 in 2019. Assume the P50,000 was not expensed in 2019. The
contributions were used to purchase P70,000 of research equipment in 2019. As a result of
this transactions, for the year ended December 31, 2019, Lamia Scale will report, on its
Statement of Activities a
Increase/ Decrease in temporarily restricted/unrestricted net assets?
_______________________________________________________
_______________________________________________________
3. Fourth Med Hospital, a nonprofit hospital reported the following information for the year
ended December 31, 2019:
5. A contribution in which the donor stipulated that the principal is non expendable, the
income generated may be expended by current contribution fund.
a. Term Endowment Fund
b. Quasi Endowment Fund
c. Agency Fund
d. Endowment Fund
6. The following receipts were among these recorded by Las Espadas College, a nonprofit
educational institution, during 2018:
7. Health Care Organization shall prepare the following financial statements except:
8. When a temporary restriction on resources of a non- government non for-profit entity is met
by the incurrence of an expense for the restricted purpose.
9. How will a non-government, not for profit entity record an agency transaction in which it
receives resources?
10. Which of the following will increase the unrestricted net assets for the year ended
December 31, 2019?
I. During 2019, a private not for profit college earned dividends and interest on term
endowments. Donors placed no restrictions on the earnings of term endowments. The
governing board of the college intends to use this investment income to fund
undergraduate scholarships for 2020.
II. A voluntary health and welfare organization spent a restricted donation which was
received in 2018. In accordance with the donor’s wishes, the donation was spent on
public health education during 2019.
11. Oracion Seis Hospital’s accounting records disclosed the following information:
13. In April 2020, Zeref donated P250,000 cash to his church with the stipulation that the
generated income from this gift is to be paid to him during his lifetime. The conditions of
this donation are that, after Zeref dies, the principal can be used by the church for any
purpose voted on by the church leaders. The church received interest of P20,000 on the
P250,000 for the year ended March 31, 2021 and the interest was remitted to Zeref. In the
church’s March 31, 2021 financial statements
a. 20,000 should be reported under support and revenue in the activity statement
b. 230,000 should be reported under support and revenue in the activity statement
c. 250,000 should be reported as deferred support in the balance sheet
d. Disclosed in notes to financial statements
14. An organization of high school seniors performs services for patients at Morong Doctors
Hospital. These students are volunteers and perform services that the hospital would not
otherwise provide, such as wheeling patients in the park and reading to patients. Morong
Doctors has no employer-employee relationship with these volunteers, who donated 500
hours of service. At the minimum wage rate, these services would amount to P46,875, while
it is estimated that the fair market value of these services was P62,500. In Hospital’s
statement of revenues and expenses, what amount should be reported as non-operating
revenue?
15. Psalm Hospital, a private non profit hospital, earned P500,000 revenues from its gift shop
located at the lobby and spent P100,000 on research during the year ended December 31,
2020. The P100,000 spent on research was part of a P150,000 contribution received during
December of 2018 from a donor who stipulated that the donation be used for medical
research. None of the gift shop revenues were spent in 2020. What was the increase in
unrestricted net assets from the events that occurred during 2020?
16. AAA Hospital, a non profit hospital affiliated with a private university, reported the
following:
What amount should be reported as other revenues and gains in the statement of activities?
What amount should be included as revenues and current fund revenues, respectively?
Unrestricted 500,000
Restricted for Acquisition of Equipment 375,000
All pledges are legally enforceable. However, Maine’s experience indicates that 10% of all
pledges may prove to be uncollectible.
What amount should be Maine report as pledges receivable, net of any required
allowances?
a. 337,500
b. 450,000
c. 787,500
d. 875,000
20. On December 30, 2020, Babarian, a non-profit organization received a P17,500,000 donation
of Globin shares with donor stipulated requirements as follows:
• Shares valued at P12,500,000 are to be sold with the proceeds used to construct a
public viewing building.
• Shares value at P5,000,000 are to be retained with P100,000 dividend used to support
current operations.
How much should be Barbariane report as temporarily restricted net assets in the 2020
statement of financial position?
a. 12,600,000
b. 5,000,000
c. 12,500,000
d. 17,500,000
21. Dr. Tan Hospital, non-profit hospital affiliated with a religious group, reported the following
information for the year ended December 31, 2020:
Gross patient service revenue at the full rates 1,960,000
Bad debts expense 20,000
Contractual adjustment, VAT 178,180
Allowance for discounts to hospital employees 30,000
In Dr. Tan Hospital’s statement of activities for the year ended December 31, 2020, what
amount should be reported as patient service revenue?
a. 1,751,820
b. 1,781,820
c. 1,710,000
d. 1,960,000
22. Trisha Hospital, a non-profit, had the following cash receipts for 2020.
As a result of these cash receipts, the hospital’s statement of cash flows for 2020 would
report an increase in operating activities of what amount?
a. 650,000
b. 750,000
c. 700,000
d. 600,000
23. Doctor Hospital, a nonprofit hospital affiliated with RCF College, had the following cash
receipts for 2020:
The dividends received are restricted by the donor for hospital building improvements. No
improvements were made during 2020.
In case hospital’s statement of cash flows for 2020, what amount would be included in
the net cash provided (used) by operating activities?
a. 1,760,000
b. 1,600,000
c. 2,100,000
d. 1,500,000
24. A nonprofit organization had the following cash contributions and expenditures in 2020.