NATIONAL COLLEGE OF BUSINESS AND ARTS

Cubao-Fairview-Taytay
Summer SY 2015-2016

MID-TERM DEPARTMENTAL EXAMINATIONS 2 HRS

ACCOUNTING 13 – 07 GOVERNMENT ACCTG & ACCTG FOR NGO

INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one
answer for each item by shading the corresponding letter of your choice on the answer sheet
provided. STRICTLY NO ERASURES ALLOWED. Use Pencil No. 2 only.

1. The accounting unit of a government entity

a. Budget b. Fund c. Cash d. Equity

2. The fund that is available for all functions of the government:

a. Special Fund b. Fiduciary Fund c. Plant Fund d. General Fund

3. This fund includes the proceeds of specific revenue from taxes that are legally restricted to
expenditures for specified purposes:
a. Special Fund b. Fiduciary Fund c. Plant Fund d. General Fund

4. This phase of Budgetary Procedures which involves the submission of the National Budget to the
Legislative Body for review, deliberation and formulation of an Appropriation Bill:
a. Preparation and Presentation c. Budget Execution
b. Budget Authorization d. Budget Accountability

5. Under the New Government Accounting System (NGAS), the method of accounting that is used in
recording transactions of the government is:
a. Obligation accounting c. Liquidation accounting
b. Commercial accounting d. Fund accounting

6. The government agency that is responsible for the release of allotments to various government
agencies is:
a. Bureau of Treasury
b. Department of Budget and Management
c. Department of Finance
d. Commission on Audit

7. A standardized system of releasing allotments based on a predetermined categorization or

desegregation of agency budgets.
a. Modified Disbursing System c. Budgetary System
b. Simplified Fund Release Scheme d. Allotment System

8. A plan of financial operation embodying an estimate or proposed expenditures for a given period
and the proposed means of financing them is a:
a. Budget c. Financial Plan
b. Master Plan d. Fund Plan

9. Which of the following is not feature of government accounting?

a. Accounting is done by fund
b. Budgetary accounts is used
c. Preparation of income statement is a must
d. Capital accounts for ownership are absent

10. Which of the following account under the NGAS is credited when Notice of Cash Allocation is
received by the agency?
a. Notarial Clearing Account
b. Budgetary accounts is used
c. Preparation of income statement is a must.
d. Capital accounts for ownership are absent.
ACCOUNTING 13-07 ACCOUNTING FOR GOVERNMENT & ACCTG FOR NGO

11. A remittance of Bureau of Internal Revenue of taxes collected for the period to Bureau of treasury
would involve a debit to:
a. Cash - Deposits
b. Income Taxes - Individual
c. Cash in Treasury
d. Cash - Collecting Officer

12. Transfers of one agency to another agency of cash in order to do the project of the entity receiving
cash would involve a ___________ to the one who transferred cash:
a. Debit of Accounts Receivable
b. Debit to Due from National Government - Recipient Agency
c. Credit of Due from National Government - Recipient Agency
d. Credit of Accounts Payable

13. Which of the following should be used in accounting for nonprofit organization?
a. Fund accounting and accrual accounting
b. Fund accounting but not accrual accounting
c. Accrual Accounting but not fund accounting
d. Neither accrual accounting nor fund accounting

14. One characteristic of nonprofit organization that is comparable with the characteristics of
government entities is:
a. Stewardship of resources
b. Governance by board of directors
c. Measurement of cost expirations
d. None of the following

15. A nonprofit organization’s restricted fund resembles a government entity’s:

a. Agency Fund
b. Endowment Fund
c. Special Fund
d. Assessment Fund

16. A gift to nonprofit organization that is not restricted by the donor is credited in the unrestricted
(general) fund to:
a. Fund balance
b. Deferred Revenue
c. Contributions Revenues
d. Nonoperating revenues

17. The current fair value of contributed material is recognized in a nonprofit organization’s unrestricted
fund with a debit to Inventories and a credit to:
a. Undesignated Fund Balance
b. Payable to Restricted Fund
c. Designated Fund Balance - Merchandise
d. Contributions Revenue

18. Which of the following is not a source of resources of a nonprofit organization’s restricted fund.
a. Operations of the nonprofit organization
b. Contributions of individual of government entities
c. Gains on disposals of investments
d. Revenues from endowment

19. Fund raising expenses of nonprofit organizations are presented in the statement of activity as:
Program Services Expenses Supporting Expenses
a. Yes No
b. Yes No
c. No Yes
d. No No

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ACCOUNTING 13-07 ACCOUNTING FOR GOVERNMENT & ACCTG FOR NGO

20. A nonprofit organization occupies a building space rent - free, as permitted by the building owner.
The existence of rent - free facilities is recognized in nonprofit organization’s unrestricted fund as:
a. Financial expense and other operating support
b. Rent expense and an increase in fund balance
c. Rent expense and contributions revenue
d. An item requiring in a note to the financial statements

21. AB university’s (a NGO) unrestricted funds comprised the following:

Assets P 500,000
Liabilities (including Deferred Revenue of 10,000) 300,000

a. P190,000 b. P200,000 c. P210,000 d. P500,000

22. GG Foundation, Inc. (a NGO) accounting records disclosed the following informations:

Carrying amount of PPE 19 Million

Board Designated Funds 6 Million

a. P25 Million b. P19 Million c. P6 Million d. 0

23. In 2011, St. paul received an unrestricted bequest of common stock with a fair value of P50,000 on
the date of receipt of the stock. The testator had paid P20,000 for this stock in 2009. St. Paul
Hospital should record this bequest as:
a. Non - operating revenue of P50,000
b. Non - operating revenue of P30,000
c. Non - operating revenue of P20,000
d. A memorandum entry only.

24. Philippine General Hospital’s accounting records disclosed the following information:
Net resources in plant assets P10,000,000
Board - designated funds 2,000,000

What amount should be included as a part o unrestricted funds?

a. P 12,000,000 b. P 10,000,000 c. P 2,000,000 d. 0

25. In June 2011, San Andres Hospital purchased medicine from Park Pharmaceutical Co. of P1,000.
However, park notified San Andres that the invoice was being canceled and that the merchandises
were being donated to San Andres. San Andres should record this donation od medicines as:
a. Operating revenue of P10,000
b. P1,000 credit to operating expenses
c. P1,000 credit to non - operating expenses
d. A memorandum entry only

26. On January 2,2011, a non profit botanical society received a gift of an exhaustible fixed asset with
an estimated useful life of 10 years and no salvage value. The donor’s cost of this asset was
P20,000 and its fair market value at the date of gift is P30,000. What amount of depreciation of this
asset should the society recognize in its 2011 financial statements.
a. P 3,000 b. P2,500 c, P2,000 d. 0

27. The statement of financial position for Lovers Library should report separate peso amount for the
library’s net assets according to which of the following classifications?
a. Unrestricted and permanently restricted.
b. Temporarily restricted and permanently restricted.
c. Unrestricted and temporarily restricted
d. Unrestricted, temporarily restricted and permanently restricted.

28. A college’s plant funds group include which of the following subgroups?
I. Renewals and replacement funds.
II. Retirement of indebtedness funds.
III. Restricted current funds

a. I and II b. I and III c. II and III d. I only

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ACCOUNTING 13-07 ACCOUNTING FOR GOVERNMENT & ACCTG FOR NGO

29. Funds received by a college from donors who have stiplated that the principal is nonexpendable
but that the income generated may be expended by current operating funds would be accounted
for in the
a. Endowment Fund
b. Term Endowment Fund
c. Agency Fund
d. Quasi - Endowment Fund

30. In the loan fund of a college, each of the following types of loans would be found except
a. facility b. computer c. staff d. student

31. Agency RRR had the following account balances for the year 2011:
Current assets P10 Million
Investment and Fixed Assets 90 Million
Other Assets 5 Million
Liabilities 18 Million
Contingent Liabilities 5 Million
Contingent Assets 3 Million

32. Agency MMM have an obligation for building upon signing of contract amounting to P10,000,000.
The entry to record this transaction would be:
a. No Entry
b. Memorandum Entry
c. Appropriations Allocated 10 Million
i. Obligations Incurred 10 Million
d. Buildings 10 Million
i. Accounts Payable 10 Million

33. Agency GGG paid Meralco bill amounting to P40,00, the entry to record this transaction would be:

a. Electricity expense 40,000

i. Cash - National Treasury, MDS 40,000
b. Electrical expenses 40,000
i. Accounts payable 40,000
c. Memorandum Entry only
d. No entry required

34. Agency DDD was granted cash advances for payroll amounting to P280,000, the entry would be:
a. No entry
b. Memorandum entry in RAOPS
c. Payroll Fund 280,000
i. Cash - National Treasury, MDS 280,000
d. Cash - disbursing officer 280,000
i. Due from National government 280,000

35. A hospital should report earnings from endowment funds that are restricted to a specific operating
purposes as
a. General fund revenues, when expected
b. Other operating revenue
c. Patient service revenue
d. Ancillary service revenue

36. Equipment donated for use in ahospital should be reported as

a. Other operating expenses
b. Non operating revenues
c. Additions to the unrestricted funds balance
d. Additions to the restricted funds balance.

37. The PPE of NGOs should be accounted for as part of

a. Unrestricted funds
b. Restricted funds
c. Specific purpose funds
d. Other non - operating funds.
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38. St. Luke’s Hospital received unrestricted bequest of P100,00 in 2011. This bequest should be
recorded as
a. Memorandum Entry only
b. Other operating revenue of P100,000
c. Nonoperating revenue of P100,000
d. A direct credit of P100,000 to the fund balance

39. Financial statements of Not - for - Profit Organizations, focuses on:

a. Basic information of the organization as a whole
b. Standardization of funds nomenclature
c. Inherent differences of not - for - profit organizations that impact reporting presentations
d. Distinctions between current fund and non - current fund.

40. In preparing the statement of cha flows for a non government, not - for - profit entity, cash
disbursements that are restricted for long - term purposes are classified as:
a. Operating
b. Investing
c. Financing
d. Capital and related financing activities

41. A nongovernment, not - for - profit entity gives donors a sweatshirt imprinted with its logo when they
pay P15 dues. The value of the sweatshirt is approximately P15. This transaction is most likely
reported as:
a. An exchange transaction
b. An agency transaction
c. A contribution
d. A gift in kind

42. Unconditional promises to give are recognized as contribution revenue when:

a. The promise is received
b. The related receivable is collected
c. The time or purpose restriction is satisfied
d. The future event that binds the promisor occur

43. Revenue from the parking lot operated by a hospital would normally be included in
a. Patient service revenue
b. Ancillary service revenue
c. Other operating revenue
d. Other non - operating revenue

44. Current funds of St. Scholastica for the year ended March 31, 2011:
Restricted gifts received
Expended P 100,000
Not Expended 300,000
Unrestricted gifts received
Expended 600,000
Not Expended 75,000

What amount should be included in current funds revenues for the year ended March 31, 2011?
a. P 600,000 b. P 700,000 c. P 775,000 d. P 1,000,000

45. St. Vincent’s record showed amounts to be used for:

Renewal and Replacement of college properties P200,000
Retirement of indebtedness on college properties 300,000
Purchase of physical properties for college purposes 400,000
but expended at 7/31/2011

What total amount should be included in St. Vincent’s plant funds at July 31, 2011?
a. P900,000
b. P600,000
c. P400,000
d. P200,000

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46. An alumnus donates securities to San Beda College and stipulates that the principal be held in
perpetuity and revenue be used for faculty travel. Dividends received form the securities should be
recognized as revenues in
a. Endowment funds
b. Quasi - endowment funds
c. Restricted current funds
d. Unrestricted current funds

47. Here are the expenditures of Green Community, an NGO

Printing of annual report P 12,000
Unsolicited merchandise sent to encourage contributors 25,000
Cost of an audit performed by a CPA firm 3,000

What amount should be classified as fund raising costs in the society’s activity statement?
a. P37,000
b. P28,000
c. P25,000
d. 0

48. On the statement of activities for a not - for - profit performing arts center, expenses should be
deducted from
I. Unrestricted revenues
II. Temporarily restricted revenues
III. Permanently Restricted Revenues
a. I,II,III
b. Both I and II
c. I only
d. II only

49. How will a nongovernment, not - for - profit entity record an agency transaction in which it receives
resources.
a. No entity is made in the accounts
b. Debit the asset account and credit contribution revenue
c. Debit asset account and credit temporarily restricted net assets
d. Debit the asset account and credit a liability account

50. Which prescribes the financial statements of not - for - profit organizations, reporting
reclassifications is caused by which of the following?

I. Expiration of donor - imposed conditions

II. Expiration of donated - imposed restrictions

a. I only
b. Both I and II
c. II only
d. Neither I nor II

*** THE END ***

God Bless! : D

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