Advanced Financial Accounting and
Reporting (AFAR). Newest 2026-2027.
Questions and Correct Answers.
Graded A
In the statement of activities, expenses of nonprofit organizations shall be
recorded only as reductions from
A. Temporarily restricted net assets
B. Unrestricted net assets
C. Permanently restricted net assets
D. Current Liability - ANSB. Unrestricted net assets
It refers to the newest system adopted by the Commission on Audit for
analyzing, classifying, summarizing, and communicating all transactions
that are involved in the receipt and disbursement of all government funds
and properties, and interpreting the results thereof.
A. New government accounting system
B. Government accounting manual
C. Fund accounting
D. Public fund accounting - ANSB. Government accounting manual
1
, Last year, a nonprofit organization received a contribution with a donor
restriction for research purposes. In the current year, the nonprofit
organization fully spent the said contribution for the intended purpose.
What is the effect of this expenditure on the current year's change in net
assets?
A. Increase the temporarily restricted net assets.
B. No effect on the unrestricted net assets.
C. No effect on the total net assets.
D. Decrease the permanently restricted net assets. - ANSB. No effect on
the unrestricted net assets.
Resources of a non-profit organization that have been set aside for a
specific purpose by the Board of Trustees of the organization are
accounted for in
A. Term endowment fund
B. Unrestricted fund
C. Restricted current fund
D. Annuity fund - ANSB. Unrestricted fund
Soon-to-be partners, A and B will contribute the following: A will contribute
cash, P1,500,000, and B will contribute a Building with a carrying amount of
P1,000,000 and an agreed value of P1,200,000.
The building has a mortgage in the amount of P100,000, but it will be paid
personally by B. One of the provisions, of their agreement is upon
formation the capital balances of the partners will be equal.
2
Reporting (AFAR). Newest 2026-2027.
Questions and Correct Answers.
Graded A
In the statement of activities, expenses of nonprofit organizations shall be
recorded only as reductions from
A. Temporarily restricted net assets
B. Unrestricted net assets
C. Permanently restricted net assets
D. Current Liability - ANSB. Unrestricted net assets
It refers to the newest system adopted by the Commission on Audit for
analyzing, classifying, summarizing, and communicating all transactions
that are involved in the receipt and disbursement of all government funds
and properties, and interpreting the results thereof.
A. New government accounting system
B. Government accounting manual
C. Fund accounting
D. Public fund accounting - ANSB. Government accounting manual
1
, Last year, a nonprofit organization received a contribution with a donor
restriction for research purposes. In the current year, the nonprofit
organization fully spent the said contribution for the intended purpose.
What is the effect of this expenditure on the current year's change in net
assets?
A. Increase the temporarily restricted net assets.
B. No effect on the unrestricted net assets.
C. No effect on the total net assets.
D. Decrease the permanently restricted net assets. - ANSB. No effect on
the unrestricted net assets.
Resources of a non-profit organization that have been set aside for a
specific purpose by the Board of Trustees of the organization are
accounted for in
A. Term endowment fund
B. Unrestricted fund
C. Restricted current fund
D. Annuity fund - ANSB. Unrestricted fund
Soon-to-be partners, A and B will contribute the following: A will contribute
cash, P1,500,000, and B will contribute a Building with a carrying amount of
P1,000,000 and an agreed value of P1,200,000.
The building has a mortgage in the amount of P100,000, but it will be paid
personally by B. One of the provisions, of their agreement is upon
formation the capital balances of the partners will be equal.
2
