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University of St. Louis Tuguegarao SET A

Tuguegarao City, Cagayan

QUIZ 1 (NGO

!ULTI"LE C#OICE$(1% "OINTS

1.A permanent endowment is one on which

I.The principal may be expended after the passage of a certain period or the occurrence of an event specified by

the donor.II.The principal must be maintained indefinitely in revenue producing investments and only the revenue fromthe investments may be expended.

a. I onlyb. II onlyc. Both I and IId.Neither I nor II

2.The type of endowment fund that may be established only by the the governing board of a nonprofitorganiation using unrestricted net assets and the principal may later be expended is

a. !ermanent endowment fundb. Term endowment fund

c. "uasi#endowment fundd. Trustee endowment fund$.The %annuity fund& of a nonprofit organiation

I. Is used to account for assets contributed to the nonprofit organiation with the stipulation that theorganiation shall ma'e stipulated payment to a named beneficiary but only the income on the fundis paid to the beneficiary.

II. Is established for assets contributed to a nonprofit organiation with the stipulation that theorganiation shall pay specified fixed amounts periodically to designated recipients for aspecified period of time.

a. I only

b. II onlyc. Both I and II

d. Neither I nor II (.In the prior year) an alumnus of a private nonprofit high school made a contribution with the donation be

used for faculty travel during the current year. *uring the current year) the school spent all thedonation for faculty travel expenses. +hat was the effect of the donation on unrestricted andtemporarily restricted net assets for the current year,

a. Increase in unrestricted net assets and decrease in temporarily restricted net assets.b. No effect on unrestricted net assets and decrease in temporarily restricted net assets.c. Increase in unrestricted net assets and no effect on temporarily restricted net assets.d. No effect on both unrestricted and temporarily restricted net assets.

-.The assets in a uasi#endowment fund should be included in which of the following classifications,a. Temporarily restricted net assetsb. /nrestricted net assetsc. !ermanently restricted net assetsd. 0ither termporarily or permanently restricted net assets depending upon the term of the uasi#endowment .*uring the current year ended *ecember $1) a foundation received the following contributed services I. 3enior citiens participated in a telethon to raise money for a new music building. II.A reputable law firm contributed services which involve advice related to the foundation4s regular

endowments.+hich of these contribution4s statement of activities for the current year ended *ecember $1,

a. Both I and II

b. II onlyc. I onlyd. Neither I nor II

5.A statement that is not mandatory reuired by regulating bodies but not for profit organiations areencouraged to do to provide additional expense information.a. 3tatement of 6inancial !ositionb. 3tatement of Activitiesc.3tatement of 6unctional 0xpensesd. 3tatement of 7ash 6lows

8.A statement with same definition and classifications as that of business enterprises except that the descriptionof financing activities is expanded to include resources that are donor#restricted for long term purposes.

a. 3tatement of 6inancial !ositionb. 3tatement of Activities

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c.3tatement of 6unctional 0xpensesd. 3tatement of 7ash 6lows9.It depends only on the passage of time or demand by the promisee for performancea. 7onditional promise to giveb. /nconditional promise to givec. *onor imposed restrictiond. *onor imposed condition1:.In preparing the statement of cash flows for a non#govermental not for profit enitity) cash contributions that

are restricted for long term purposes are classified as.a. ;perating activitiesb. Investing activitiesc. 6inancing activitiesd. 7apital and related financing activities

I&ENTI'ICATION$ (1% "oints

1 .These are expenses that generally include goods and services distributed to beneficiaries) customers) ormembers to fulfill the purpose a mission of the organiation.

2.These are expense activities which includes general oversight) business management) general record 'eeping)budgeting) finance and other management and administrative activities.

$.An organiations that provide various 'inds of health) welfare) and community services voluntarily to varioussegments of society(.These should be recognied only when the services

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QUIZ 1 (NGO

!ULTI"LE C#OICE$(1% "OINTS

1.*uring the current year ended *ecember $1) a foundation received the following contributed services I. 3enior citiens participated in a telethon to raise money for a new music building. II.A reputable law firm contributed services which involve advice related to the foundation4s regular

endowments.+hich of these contribution4s statement of activities for the current year ended *ecember $1,

a. Both I and II

b. II onlyc. I onlyd. Neither I nor II

2.A statement that is not mandatory reuired by regulating bodies but not for profit organiations areencouraged to do to provide additional expense information.a. 3tatement of 6inancial !ositionb. 3tatement of Activitiesc.3tatement of 6unctional 0xpensesd.3tatement of 7ash 6lows

$.A statement with same definition and classifications as that of business enterprises except that thedescription of financing activities is expanded to include resources that are donor#restricted for long

term purposes.a. 3tatement of 6inancial !ositionb. 3tatement of Activitiesc.3tatement of 6unctional 0xpenses

d. 3tatement of 7ash 6lows (.It depends only on the passage of time or demand by the promisee for performancea. 7onditional promise to giveb. /nconditional promise to givec. *onor imposed restrictiond. *onor imposed condition-.In preparing the statement of cash flows for a non#govermental not for profit entity) cash contributions that

are restricted for long term purposes are classified as.a. ;perating activitiesb. Investing activitiesc. 6inancing activitiesd. 7apital and related financing activities

.A permanent endowment is one on whichI.The principal may be expended after the passage of a certain period or the occurrence of an event

specified by the donor.II.The principal must be maintained indefinitely in revenue producing investments and only the revenue

from the investments may be expended.a. I only

b. II onlyc. Both I and IId.Neither I nor II

5.The type of endowment fund that may be established only by the the governing board of a nonprofitorganiation using unrestricted net assets and the principal may later be expended is

a. !ermanent endowment fundb. Term endowment fundc. "uasi#endowment fundd. Trustee endowment fund8.The %annuity fund& of a nonprofit organiation

I. Is used to account for assets contributed to the nonprofit organiation with the stipulation that the

organiation shall ma'e stipulated payment to a named beneficiary but only the income on the fundis paid to the beneficiary.

II. Is established for assets contributed to a nonprofit organiation with the stipulation that theorganiation shall pay specified fixed amounts periodically to designated recipints for a specifiedperiod of time.a. I onlyb. II onlyc. Both I and II

d. Neither I nor II 9.In the prior year) an alumnus of a private nonprofit high school made a contribution with the donation be

used for faculty travel during the current year. *uring the current year) the school spent all the donation for faculty travel expenses. +hat was the effect of the donation on unrestricted

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and temporarily restricted net assets for the current year,a. Increase in unrestricted net assets and decrease in temporarily restricted net assets.b. No effect on unrestricted net assets and decrease in temporarily restricted net assets.c. Increase in unrestricted net assets and no effect on temporarily restricted net assets.d. No effect on both unrestricted and temporarily restricted net assets. 1:.The assets in a uasi#endowment fund should be included in which of the following classifications,a. Temporarily restricted net assetsb. /nrestricted net assets

c. !ermanently restricted net assetsd. 0ither termporarily or permanently restrictednet assets depending upon the term of the uasi#endowmentI*0NTI6I7ATI;N estricted contributions for long#term purposes and interest and dividends from investments restricted for long#term purposes) such as endowments and future programs are reported in 3tatement of 7ash 6lows as ??????????????.

"re)are *ourna+ Entries ase- on te 'o++o/ing transa0tions$(1% "OINTS

A group of concerned citien organied a voluntary health and welfare organiation called ove Thy

Neighbors

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1.B 1.b2.7 2.7$.B $.*(.B (.*-.B -.B.b .B5.7 5.78.* 8.B9.* 9.B

1:.B 1:.B

1.!rogram 3ervices 1.3tatement of activities2.Eanagement and Feneral 2.N!;$.Goluntary Health and +elfare ;rganiations $.3tewardship of resources(.7ontributed 3ervices (. !lant fund-.financing activities -.Term 0ndowment fund.3tatement of activities . !rogram 3ervices5.N!; 5.Eanagement and Feneral8.3tewardship of resources 8. Goluntary Health and +elfare ;rganiations9.!lant fund 9. 7ontributed 3ervices1:.Term 0ndowment fund 1:.financing activities

1.6und >aising 0xpense 1(- /nrestricted support#3er. 0xp -:7ash 1(- 7ash or Gouchers !ayable -:

7ash (:::/nrestricted support#cont. (:::

7ont >eceivable :::Allowance for uncollectible cont ::/nrestricted support#cont $::Temp. >estricted support#cont 18::

2.7ash $::Allowance for uncollectible cont (::

7ont >eceivable (:::

$.7ash 2:::Allowance for uncollectible cont 2::

7ont >eceivable 2:::/nrestricted support#cont 2::

Temp. >estricted Net Asset#>eclassification out 18::/nres. Net Asset#>eclassification in 18::

(. 7ash 1:::Temp. >estricted support#cont 1:::

0xpenses# community service 9::

7ash 9::

Temp. >estricted Net Asset#>eclassification out 9::/nres. Net Asset#>eclassification in 9::

-.0uipment 1-:::Temp. >estricted support#cont 1-:::

*epreciation expense#!3 73 -::A*# euipment -::

Temp. >estricted Net Asset#>eclassification out -::/nres. Net Asset#>eclassification in -::

. 7ash 9-:/nrestricted gains# special event 9-: