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Questions and Answers
Which of the following is a trend in the practice of non-profit organization accounting?
What are the characteristics of a non-profit organization according to the text?
What do non-profit organizations carry out, according to the text?
Which of the following is a characteristic of a non-profit organization as stated in the text?
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What type of organization is Adventist Medical Center Manila based on the text?
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What principles are applicable to non-profit organizations based on the text?
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What type of organization is the Angat Buhay Foundation, Inc.?
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According to PFRS Principles, when is an asset (or liability) derecognized?
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Which financial accounting standards are mentioned as the basis for discussions on the accounting for NPOs?
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How are subsequent measurements of assets or liabilities conducted under PFRS Principles?
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What is the main purpose of recognizing surplus revenue in non-profit organizations?
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Which of the following is a recognition criteria for assets and liabilities according to PFRS Principles?
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What is the initial measurement of assets under PFRS Principles?
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Which type of organization does not distribute surplus revenues as dividends?
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Under PFRS Principles, how is subsequent measurement of assets or liabilities conducted?
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Which accounting standards may be used in conjunction with the PFRSs for providing more useful financial information to users of NPOs?
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Study Notes
Non-Profit Organization Accounting Trends
- 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.