16 Questions
What is the primary objective of a non-profit organization?
Generate profit for the public as a whole
Which of the following is NOT considered a non-profit organization?
Private corporations
What is the applicability of IFRSs/PFRSs to non-profit organizations?
They apply only to profit-oriented entities
What is the main focus of accounting for non-profit organizations?
Recording revenues and expenses accurately
Which type of organization is specifically organized for the benefit of the public as a whole?
Non-stock corporation
What is the key characteristic that distinguishes non-profit organizations from profit-oriented entities?
Public benefit focus
Which financial reporting standards are generally not designed for not-for-profit activities?
PAS 2 Presentation of Inventory
Which entities might be required or choose to apply IFRSs despite being developed for profit-oriented entities?
Not-for-profit entities
What is the scope limitation of IFRSs with regard to not-for-profit activities?
They do not have scope limitations for not-for-profit activities
In the context of financial reporting, what can non-profit organizations in the private sector be organized as?
Non-stock, non-profit corporations
What is required of non-profit organizations organized as non-stock, non-profit corporations?
They must file audited annual financial statements
What type of statement did the auditors' report in Example 1 provide about the financial statements of the organization?
'The financial statements give a true and fair view'
According to the HIERARCHY OF GUIDANCE, which option is placed first for requirements of current standards dealing with similar matters?
'Requirements of current standards dealing with similar matters'
What statement of compliance was included in the financial statements prepared in Example 2?
'The financial statements have been prepared in accordance with IFRS'
What is one characteristic of non-profit organizations in the private sector as mentioned in the text?
They file audited annual financial statements
What is a requirement for non-profit organizations organized as non-stock, non-profit corporations?
File audited annual financial statements
Test your knowledge on the Philippine Financial Reporting Standards (PFRS) as it applies to non-profit organizations. This quiz covers topics such as accounting for assets, liabilities, equity, revenues, and expenses specific to NPOs.
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