Not-for-Profit Organizations: Accounting Methods & Revenue

NOT FOR PROFIT ORGANIZATIONCW 4 GENERAL CONCEPTS: C1Not for profit organizations account for revenues and expenses using what method of accounting aCash basisbModified Cash basiscModified AccrualdSome other answer A2The two major sources of revenues are contributions and aRegular type of revenuescMiscellaneous revenue bOther type of revenuesdSome other answer C3Statement 1 Only contributions are subject to restrictions Statement 2 The regular type of revenue is unrestricted or even though restricted but made by the donor it is still classified as unrestricted since the donor can lift anytime such restriction aTrue, truebFalse, truecTrue, false dFalse, false A4Statement 1To be considered as restricted, it should be imposed by the donor Statement 2Condition, is necessary whether to recognize such donation as Revenue or Liability aTrue, truebFalse, truecTrue, false dFalse, false B5Statement 1 Both temporary and permanent restrictions result to reclassification Statement 2 A temporary restriction expires when time restriction has elapsed or purpose-restriction has been fulfilled or the useful life of the asset has ended, (in case of donated asset) aTrue, truebFalse, truecTrue, false dFalse, false B6An unconditional promise to give is reported in the priod the pledges were: acash is collectedbmade or receiveccash is earmarkedd Some other answer A7Voluntary Health organization also must provide, in addition to the four (4) required statements, which is aStatement of Functional Expensesc Statement of Administrative Expenses bStatement of Operating Expensesd Some other answer A8The goal of the reporting requirements is to establish consistent standards for reporting abasic informations for the organizationc to the board of trustees/directors band audit purposesd Some other answer PRIVATE UNIVERSITIES/COLLEGES: C9The following funds were among those held by Central Luzon State University at Dec. 31, 2012: Principal specified by the donor as non-expendable 500,000 Principal expendable after 2013 300,000 Principal designated from unrestricted net assets 100,000 What amount should CLSU classify as permanently restricted endowments? aP100,000bP300,000cP500,000dP900,000 B10Catherine College, a private not-for-profit college, received the following contributions during 2012 (1)P5,000,000 from alumni for construction of a new wing on the science building to be constructed in 2013 (2)P1,000,000 from a donor who stipulated that the contribution be invested indefinitely and that the earnings be used as scholarships. As of December 31, 2012, earnings from investments amounted to P 50,000 For the year ended December 31, 2012, what amount of these contributions should be reported as temporarily restricted revenues on the Statement of Activities? aP50,000bP5,050,000cP5,000,000dP6,050,000 A11Kerry College, a private not-for-profit college, received P 25,000 from Mrs. Smith on April 30, 2012.Mrs. Smith stipulated that her contribution be used to support faculty research during the fiscal year beginning on July 1, 2012. On July 15, 2012, Kerry administrators awarded research grants totalling P 25,000 to several faculty in accordance with the wishes of Mrs. Smith. For the year ended June 30, 2012, Kerry College should report the P 25,000 contribution as: aTemporarily restricted revenues on the Statement of activities bUnrestricted revenue on the Statement of activities cTemporarily restricted deferred revenue on the Statement of activities d An increase in fund balance on the Statement of Financial position A12For the 2012 First Semester, Philippine School of Business Administration assessed its student P 4,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only P 3,700,000 was expected to be realized because tuition remissions of P 80,000 were allowed to faculty members'children attending PSBA, and scholarships totalling P 220,000 were granted to students.