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Government Accounting Non-Profit Organization Module 1 Quiz
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Government Accounting Non-Profit Organization Module 1 Quiz

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Questions and Answers

Which of the following is a trend in the practice of non-profit organization accounting?

  • Focusing solely on revenue generation
  • Implementing transparency and accountability (correct)
  • Maximizing profits for shareholders
  • Operating without financial records
  • What are the characteristics of a non-profit organization according to the text?

  • Commercial, privately owned, and profit-distributing
  • Government-owned, for-profit, and non-beneficial to the public
  • Profit-oriented, publicly owned, and self-governing
  • Self-governing, voluntary, and beneficial to the public (correct)
  • What do non-profit organizations carry out, according to the text?

  • Commercial activities only
  • Activities aimed at maximizing profit
  • Government-directed activities
  • Socially desirable needs of the community or its members (correct)
  • Which of the following is a characteristic of a non-profit organization as stated in the text?

    <p>Voluntary</p> Signup and view all the answers

    What type of organization is Adventist Medical Center Manila based on the text?

    <p>Private hospital</p> Signup and view all the answers

    What principles are applicable to non-profit organizations based on the text?

    <p>Generally accepted accounting principles (GAAP)</p> Signup and view all the answers

    What type of organization is the Angat Buhay Foundation, Inc.?

    <p>Non-profit organization</p> Signup and view all the answers

    According to PFRS Principles, when is an asset (or liability) derecognized?

    <p>When it ceases to provide inflow (or require outflow) of resources embodying economic benefits</p> Signup and view all the answers

    Which financial accounting standards are mentioned as the basis for discussions on the accounting for NPOs?

    <p>SFAS No. 116 and SFAS No. 117</p> Signup and view all the answers

    How are subsequent measurements of assets or liabilities conducted under PFRS Principles?

    <p>At amortized cost, under cost model, or some other measurement model required by a relevant PFRS</p> Signup and view all the answers

    What is the main purpose of recognizing surplus revenue in non-profit organizations?

    <p>To retain in furtherance of the organization’s mission</p> Signup and view all the answers

    Which of the following is a recognition criteria for assets and liabilities according to PFRS Principles?

    <p>Probable inflow or outflow of resources</p> Signup and view all the answers

    What is the initial measurement of assets under PFRS Principles?

    <p>At cost except when a relevant PFRS requires measurement at fair value or some other value</p> Signup and view all the answers

    Which type of organization does not distribute surplus revenues as dividends?

    <p>Non-profit organization</p> Signup and view all the answers

    Under PFRS Principles, how is subsequent measurement of assets or liabilities conducted?

    <p>At amortized cost, under cost model, or some other measurement model required by a relevant PFRS.</p> Signup and view all the answers

    Which accounting standards may be used in conjunction with the PFRSs for providing more useful financial information to users of NPOs?

    <p>SFAS No. 116 and SFAS No. 117</p> Signup and view all the answers

    Study Notes

    • The trend in non-profit organization accounting is towards the adoption of financial reporting standards.

    Characteristics of Non-Profit Organizations

    • Non-profit organizations are characterized by their non-distribution of surplus revenues as dividends.
    • They have a specific mission or objective that they aim to achieve.
    • Non-profit organizations are not driven by the goal of making a profit.

    Activities of Non-Profit Organizations

    • Non-profit organizations carry out various activities that aim to further their mission or objective.

    Principles Applicable to Non-Profit Organizations

    • The principles of accounting applicable to non-profit organizations are based on the Philippine Financial Reporting Standards (PFRS).

    Accounting Standards for Non-Profit Organizations

    • The PFRS and the International Financial Reporting Standards (IFRS) are the basis for discussions on the accounting for non-profit organizations.
    • The PFRS principles can be used in conjunction with other accounting standards to provide more useful financial information to users of non-profit organizations.

    Asset Recognition and Derecognition

    • An asset (or liability) is derecognized when it is no longer expected to generate future economic benefits or when it is no longer controlled by the organization.
    • The recognition criteria for assets and liabilities include the probability of future economic benefits and the ability to measure the asset or liability reliably.

    Initial and Subsequent Measurement of Assets

    • The initial measurement of assets under PFRS Principles is at cost.
    • Subsequent measurements of assets or liabilities are conducted at fair value or amortized cost.

    Surplus Revenue Recognition

    • The main purpose of recognizing surplus revenue in non-profit organizations is to reflect the net inflow of economic benefits.

    Types of Organizations

    • Adventist Medical Center Manila is a non-profit organization.
    • The Angat Buhay Foundation, Inc. is a non-profit organization.

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    Description

    Test your knowledge on government accounting for non-profit organizations with this module 1 quiz. Explore topics such as current trends in practice, accounting for NPO, and characteristics of NPO.

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