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NON FOR PROFIT ORGANIZATIONS AND GOVERNMENT ACCOUNTING

1. Accounting for nonprofit organizations is essentially


a. Fund accounting b. State accounting c. Commercial accounting

d. Managerial accounting

2. Allotments of the government general appropriation are recorded in the registries


a. At the beginning of the year
c. Semiannually
b. At the end of the year
d. Quarterly
3. The statement of financial position of nonprofit organization displays the organizations
a. Asset, liabilities and equity
c. Excess of assets over liabilities
b. Asset, liabilities and fund balance
d. Assets, liabilities and net assets
4. Depreciation accounting
a. Provides funds
b. Fund replacements

c. Retains funds

d. All of these

5. Which government body is responsible for the design, preparation and approval of accounting systems
of government agencies?
a. Department of Budget and Management
c. Bureau of Treasury
b. Commission on Audit
d. Government Agencies
6. A nongovernment nonprofit organization is preparing its year-end financial statements.
Which of the following statements is required?
a. Statement of changes in financial position
b. Cash flow statement
c. Statement of changes in fund balance
d. Statement of revenue, expenses and changes in fund balance
7. For Guiding Light, a nongovernment nonprofit religious organization, net assets that can be expended in
accordance with the wishes of the governing board of the organization shall be reported as
a. Unrestricted
b. Temporarily restricted
c. Permanently restricted
d. Either unrestricted or temporarily restricted
8. On November 30, 2007, an alumnus of a private nonprofit high school contributed a certain amount to
the school with the stipulation that the donation be used for faculty travel expenses in 2008. During 2008,
the school spent all the donation in accordance with the wishes of the donor. For the year ended December
31, 2008, what was the effect of the donation on unrestricted and temporarily restricted net assets?
a. Increase in unrestricted net assets and decrease in temporarily restricted net assets
b. No effect on unrestricted net assets and no effect on 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
9. The modified accrual basis followed in government accounting means
a. All expenses are recognized when incurred and all income is recognized when earned
b. All expenses are recognized when paid and all income is recognized when earned
c. All expenses are recognized when paid and all income is recognized when received
d. All expenses are recognized when incurred and all income is recognized when earned except for
transactions where accrual basis is impractical or when other method is required by law.
10. This consists of the methods and practices of the government for planning, programming and
budgeting, and its primary concern is the availability and use of money to provide the necessary services
expected of the government.
a. New Government Accounting System
b. National Budget System
c. Modern Accounting System
d. Computerized Accounting System
11. Specific income accounts of the government include all of the following except
a. Taxes imposed on income
b. Taxes imposed on properties and use or sale of goods and services
c. Fines and penalties
d. Foreign government grants
12. Once a government agency receives Notice of Cash Allocation (NCA), it shall debit Cash National
Treasury and credit
a. Subsidy income Local Government
b. Subsidy income National Government
c. NCA Local Government
d. NCA National Government
13.
ANSWER:

1. A
2. B
3. D
4. C
5. A
6. B
7. A
8. B
9. D
10. B
11. C
12. B
13.

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