COMPREHENSIVE EXAMINATIONS

ADVANCED ACCOUNTING

1. For private health organization, which is included in patient service revenue?

a. Contractual Adjustment c. Charity Care
b. Restricted Contribution d. Unrestricted Contribution

2. A non-profit private elementary school occupies its school building rent-free as permitted by the
building owner. The existence of rent-free facilities is recognized as:
a. Financial Aid expense and other operating support
b. Rent Expense and an increase in fund balance
c. Rent Expense and contributions revenue
d. An item requiring disclosure in the notes

3. Which of the following private non-profit entities is required to prepare a “Statement of

Functional Expenses”?
a. Hospital c. Voluntary Health and Welfare Organization
b. University d. Performing Arts Organization

4. For a private non-profit organization, when is a donor’s conditional promise to give considered
unconditional?
a. Only when the condition is substantially met
b. When the possibility that the condition will not be met is remote
c. When the conditional promise is made
d. When the cash or other asset promised is received

5. Quorum needed to transact business during the General Assembly of a Primary Cooperative
a. 5% b. 25% c. 50% +1 d. Majority

6. An associate member may qualify as a regular member except:

a. Meets the minimum requirements of regular membership
b. Continues to patronize the cooperative for two years
c. Had paid the necessary dues and other fees
d. Signifies his/her intention to remain a member

7. Votes needed to divide or merge a Cooperative:

a. 2/3 b. 3/4 c. Majority d. 1/2 + 1

8. Unconditional Promises are recognized only when:

a. It is received from the donor c. The conditions are met.
b. The possibility of not meeting it is remote d. Performance is substantially met

9. Scholarships and fellowships are treated by Private Non-Profit schools as

a. Derived revenues from donation of the general public
b. Direct deductions of revenues
c. Direct recognition as expenses
d. Adjustments to the unrestricted contributions.

10. All of the following Non-profit Entities uses the Statement of Activities except:
a. Health Care Organizations c. Private Non-Profit Entities
b. Voluntary, Health, and Welfare Organizations d. Sports Clubs and Associations

11. Contribution revenues are derived by Non-profit entities from the following sources, except:
a. Membership Dues c. Sponsorships and Fund-raising Activities
b. Donations and Grants d. Sales of Goods and Services

12. The minimum amount that shall be paid up in establishing a Cooperative is:
a. 15,000 b. 5,000 c. 10,000 d. 25% of subscribed

13. Committees shall be included in the _____________ and additional ones may be created thru a
___________ by the Board of Directors.
a. By Laws, Resolution
 b. Resolution, By Laws
c. Articles of Cooperation, By Laws
d. Articles of Cooperation, Resolution

14. Agency MMM received a progress billing for the construction of the building as follows:
Progress billing(70% x P10 million) P7,000,000
Less: Recoupment of advances made (1,500,000)
(70% x P1,500,000)
Net billings P5,950,000

The entry to record the above billings:

a. Construction in progress-agency assets P5,950,000
Accounts payable 5,950,000
b. Construction in progress-agency assets 7,000,000
Accounts payable 5,950,000
Advances to contractors 1,050,000
c. Buildings 5,950,000
Accounts payable 5,950,000
d. Buildings 7,000,000
Accounts payable 5,950,000
Advances to contractors 1,050,000

15. Agency NNN paid the final billing for the construction of the building were computed as follows:
Final billings: (30% x P 10 million) P 3,000,000
Less: liquidated damages (10,000)
Net cost 2,990,000
Less: recoupment for advances (450,000)
Accounts payable balance 2,540,000
Less: withholding tax (10% x 2,990,000) (299,000)
Net amount 2,241,000

The entry to record the final payment of billings would be?

a. Accounts payable 2,540,000
Withholding tax payable 299,000
Cash-disbursing officer 2,241,000
b. Accounts payable 2,540,000
Withholding tax payable 299,000
Cash-national treasury, MDS 2,241,000
c. Accounts payable 2,241,000
Cash- national treasury, MDS 2,241,000
d. Buildings 2,241,000
Cash- national treasury, MDS 2,241,000

Items 16-20. Write the letter of the correct answer for each item. Select the appropriate entries in
accordance with NGAS for the independent transactions below.

16. Agency A received the following allotment for 2018: B

Capital Outlay …………………………… P50,000,000
Maintenance and
Other Operating Expenses ……………..... 10,000,000
Personnel Services ………………………. 5,000,000
Financial Expenses ………………….…... 100,000

17. Agency B received Notice of Cash Allocation (NCA) – P45,000,000 for the year 2018. D

18. Agency C had obligation for Personnel Services (PS) amounting to P300,000 for the month of
February. B

19. Agency D was granted cash advances for payroll amounting to P280,000. G

20. Agency E withheld tax (under the Tax Remittance Advice) P60, 000.(record the remittance) J
Choices:

A. No entry

B. Memorandum entry to the pertaining Registry

C. National Clearance Account ………………............ xxx xxx

Appropriations Alloted …………………….…………….. xxxxxx

D. Cash – National Treasury, MDS ………………….. xxx xxx

Subsidy Income from National Government .…………… xxx xxx

E. Cash – Disbursing Officer ………………………... xxx xxx

Cash- National Treasury, MDS …………….…………… xxx xxx

F. Cash – Disbursing Officer ………………………... xxx xxx

Due from National Government …………….…….…….. xxxxxx

G. Advances for Payroll ……………...……………… xxx xxx

Cash – National Treasury, MDS …………….…….……. xxx xxx

H. Advances for Payroll ……………...……………… xxx xxx

Cash – Disbursing Officer …………….…….…….……. xxx xxx

I. Due to BIR ……………………………………….. xxx xxx

Cash – National Treasury, MDS …………….………….. xxxxxx

J. Due to BIR ……………………………………….. xxx xxx

Subsidy Income from National Government …..……….. xxxxxx

21. Statement 1: Loans and borrowings are not considered as revenue under government accounting.
Statement 2: Subsidy from national government agencies is part of the general income.
a. True, True b. True, False c. False, True d. False, False

22. Statement 1: The account “Subsidy from National Government” is used to record the amount of
Notice of Cash Allocation received by the agency
Statement 2: If the authority is subject to limitations, the amount collected shall be remitted to the
National Treasury and transferred to a separate set of books maintained by appropriate fund.
a. True, True b. True, False c. False, True d. False, False

23. Statement 1: A Government Business Enterprise is required to use the PPSAS which has been
patterned from IPSAS.
Statement 2: Separate fund shall only be done when specifically required by law or donor agency.
a. True, True b. True, False c. False, True d. False, False

24. Statement 1: There will be a new Organization code for schools transferred from one Division to
another within the same region if there are changes in or additional functions of the Entity.
Statement 2: The National Treasurer and all AGDB shall acknowledge receipt of all funds
received by them.
a. True, True b. True, False c. False, True d. False, False

25. Statement 1: A non-profit organization is organized for the benefit of the public as well as for the
benefit of an individual proprietor, or a group of partners or stockholders
Statement 2: The concept of net income can be a primary objective of organizing a non-profit
organization in certain circumstances
a. True, True b. True, False c. False, True d. False, False