Accounting MCQ on Not-For-Profit Organizations

Accounting MCQ on Not-For-Profit Organizations

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Accounting MCQ on Not-For-Profit Organizations

1. Which of the following is not an example of Not-for-Profit Organization :

(a) Sports Club

(b) College

(c) Hospitals

(d) Private Enterprises

Ans. (d) Private Enterprises

2. Receipts and Payments Account is :

(a) Personal   A/c

(b) Real A/c

(c) Nominal Alc

(d) Profit and Loss A/c

Ans. (b) Real A/c

 3. Income and Expenditure Account is :

(a) Personal   A/c

(b) Real A/c

(c) Nominal Alc

(d) Profit and Loss A/c

Ans.  (c) Nominal A/c

4. Income and Expenditure Account is prepared by:

(a) Trading Organisations

(b) Non-trading Organisations

(c) Industrial Units

(d) All Institutions

Ans.  (b) Non-trading Organisations

5. Receipts and Payments Account generally shows

(a) Capital Fund

(b) Surplus or Deficit

(c)  Credit Balance

(d) Debit Balance

Ans. (d) Debit Balance

6. Income and Expenditure Account is prepared to know:

(a) Net Profit

(b) Gross Profit

(c) Financial Position

(d) Excess of Income over Expenditure

Ans. (d) Excess of Income over Expenditure

7. Income and Expenditure Account shows a balance of:

(a) Capital Fund

(b) Cash in Hand

(c) Net Profit

(d) Surplus or Deficit

Ans. (d) Surplus or Deficit

8. Subscriptions received in advance during an accounting year is :

(a) An Expense

 (b) A Liability

(c ) An Income

(d) An Asset

Ans. (b) A Liability

9. Life membership fee is:

(a) Earned Income

(b) Liability

(c) Expense

(d) Income

Ans. (b) Liability

10. Donations received for a special purpose will be treated as:

(a) Expenditure

(b) Income

(c) Asset

(d) Liability

Ans.  (d) Liability

11. Sale of grass in the case of a sports club is:

(a) Capital Recript

(b) Revenue Receipt

(c) an asset

(d) a liability

Ans.  (b) Revenue Receipt

12. Outstanding subscription is

(a) an asset

(b) a liability

(c) an expense

(d) an income

Ans.  (a) an asset

13. Income and Expenditure Account is prepared in lieu of:

 (a) Cash Book

(b) Trading Account

(c) Profit and Loss Account

 (d) Balance Sheet

Ans. (c) Profit and Loss Account

14. Receipts and Payments Account reveals:

(a) Cash at the end of the period

(b) Gross Profit

(c) Financial Position

(d) Net Profit

Ans. (a) Cash at the end of the period

15. Receipts and Payments Account is prepared in lieu of :

(a) Profit and Loss Account

(b) Balance Sheet

(c) Profit and Loss Adjustment Account

(d) Cash Book

Ans. (d) Cash Book

16. Legacy is usually shown as an :

(a) Asset

(b) Liability

(c) Income

(d) Expense

Ans.  (b) Liability

17. Difference between the two sides of the Receipts and Payments Account reveals:

(a) Net Profit  or Loss

(b) Expenditure

(c) Net Cash Balance

(d) None of these

Ans.  (c) Net Cash Balance

18. Income and Expenditure Account is prepared:

(a) to know gross profit

(b) to know net profit

(c) to know excess of income over expenditure

(d) to know profit on revaluation of assess and liabilities

Ans. (c) to know excess of income over expenditure

19. Income and Expenditure Account is the other name of:

(4) Trading Account

(b) Profit and Loss Account

(c) Balance Sheet

(d) Profit and Loss Adjustment Account

Ans. (b) Profit and Loss Account

20. Income and Expenditure Account records income and expenditure of:

(a) Revenue nature only

(b) Capital nature only

(c)  Both revenue and capital nature

 (d) None of the above

Ans.  (a) Revenue nature only