Test: Financial Statements Of Non Profit Organization - 1


20 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Financial Statements Of Non Profit Organization - 1


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QUESTION: 1

A nonprofit organization's assets that have been designated by its board of directors for a specific project should be reported on the external financial statements as__________________ net assets.

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QUESTION: 2

Contribution received by a Non-profit organisation is shown in the statement of activities under the caption

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QUESTION: 3

Which of the following is true relating to Income and expenditure account

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QUESTION: 4

_____ is a amount received by a non profit organization as per the WILL of a deceased person

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QUESTION: 5

Which form of financing is allowed for a nonprofit organization?

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QUESTION: 6

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

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QUESTION: 7

The receipts and payments account of a non-profit organization is a 

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QUESTION: 8

Non-profit organizations prepare all of the following accounts except the

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QUESTION: 9

Excess of expenditure over income of a Non-profit organisation is termed as______

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QUESTION: 10

_________ is a fixed annual payment and usually continue only during the life time of the named beneficiary

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QUESTION: 11

Rent expense of a non-profit organization paid in advance. Which of the following is the correct classification of rent?

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QUESTION: 12

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

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QUESTION: 13

Income and expenditure account is based on 

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The correct option is C.

Accrual Accounting. Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction.Income and Expenditure Account is prepared on an accrual basis. All incomes and expenses relating to the accounting year, whether they are actually received and paid or not, are taken into consideration. Expenditure is recorded on the debit side and income is recorded on the credit side.

QUESTION: 14

Life Membership is a capital receipt and will be added to capital fund in _______

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QUESTION: 15

Which of the following is to be recorded in an income and expenditure account?

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The correct option is B.

Income and expenditure is a nominal account which includes all revenue expenses and incomes. It is prepared the same as a profit and loss account i.e. on accrual basis. The difference of this account will represent surplus or deficit. Purchase and sale of fixed assets is a capital expense. And profit on sale of fixed assets is a revenue income, hence it will be included in income and expenditure accounts.

QUESTION: 16

Honorarium is a kind of remuneration paid to a person who is not the employee of a non-profit organization. Which of the following statements is true about the honorarium payment?

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QUESTION: 17

The capital of a non-profit organization is generally known as

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QUESTION: 18

When cash is received for life membership, which one of the following double entries is passed? 

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QUESTION: 19

XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities?

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QUESTION: 20

Which of the following statement is false regarding receipt and payment account

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