Accounting For Not-for-profit Organisation(12th Grade > Accountancy ) Questions and Answers

Question 1.


Which of the following is generally considered as a non profit organisation?


  1.     Charitable organisation 
  2.      Corporation
  3.     Audit firms
  4.      Insurance companies
Explanation:-
Answer: Option A. -> Charitable organisation 
:
A

Charitable organisation is generally considered as a non profit oriented organisation.


Question 2.


An advance receipt of subscription from a member of the non-profit organisation is considered as a/an


  1.      Expense 
  2.      Liability
  3.      Equity
  4.      Asset
Explanation:-
Answer: Option B. ->  Liability
:
B

An advance receipt of subscription from a member of the non-profit organisation is considered as a liability.


Question 3.


Subscription income for the current year irrespective of whether the money is received or not is shown in _____


  1.     Receipts and Payments Account
  2.     Income and Expenditure Account
  3.     Balance Sheet
  4.     Not shown in the books of account
Explanation:-
Answer: Option B. -> Income and Expenditure Account
:
B

Subscription income for the current year irrespective of whether the money is received or not is shown in income and expenditure Account.


Question 4.


Incomes greater than expenditures of a non-profit organisation gives rise to -


  1.      Loss 
  2.      Profit 
  3.     Surplus 
  4.     Deficit 
Explanation:-
Answer: Option C. -> Surplus 
:
C

Incomes greater than expenditures of a non-profit organisation gives rise to surplus.


Question 5.


Non profit organisations prepare all of the following except _______


  1.      Receipts and payment accounts
  2.      Income and Expenditure accounts
  3.      Balance sheet
  4.      Income statement
Explanation:-
Answer: Option D. ->  Income statement
:
D

 Non profit organisations does not prepare the income statement .


Question 6.


Government bonds, books and fixed deposit is shown on ___ 


  1.      Expense side of Income & Expenditure Account
  2.      Liabilities side of Balance Sheet
  3.     Assets side of Balance Sheet
  4.     Income side of Income & Expenditure Account
Explanation:-
Answer: Option C. -> Assets side of Balance Sheet
:
C

Government bonds, books and fixed deposit is shown as assets in the balance sheet.


Question 7.


Which account resembles the cash book?


  1.     Profit and Loss Account
  2.     Receipts and Payments Account
  3.     Income and Expenditure Account
  4.     Trading Account
Explanation:-
Answer: Option B. -> Receipts and Payments Account
:
B

Receipts and Payments Account resembles the cash book.


Question 8.


__________ expenditure is shown on the expense side of income and expenditure account.


  1.     Capital
  2.     Revenue
  3.     Both capital and revenue expenditure
  4.     None of these
Explanation:-
Answer: Option B. -> Revenue
:
B

Revenue expenditure is shown on the expense side of income and expenditure account.


Question 9.


Which of the following is regarded as apt to show the purchase of a fixed asset?


  1.      Income and Expenditure account
  2.     Profit and loss account
  3.     Balance sheet
  4.     None of these
Explanation:-
Answer: Option C. -> Balance sheet
:
C

Balance sheet is regarded as apt to show the purchase of a fixed asset


Question 10.


__________ is an example of non-trading concern.


  1.     Commercial banks 
  2.     Civil hospital
  3.      Joint stock company
  4.     Private educational institutions
Explanation:-
Answer: Option B. -> Civil hospital
:
B

Civil hospital is an example of non-trading concern.


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