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Accountancy: CUET Mock Test - 6


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40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 6

Accountancy: CUET Mock Test - 6 for Class 12 2023 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 6 questions and answers have been prepared according to the Class 12 exam syllabus.The Accountancy: CUET Mock Test - 6 MCQs are made for Class 12 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 6 below.
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Accountancy: CUET Mock Test - 6 - Question 1

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

Accountancy: CUET Mock Test - 6 - Question 2

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 2

Legacy is the amount received by a non-profit organisation when a person has mentioned about transferring his property value to such organisation on his or her death. Hence, on death of that person, his property will be taken by the non-profit organisation.

Accountancy: CUET Mock Test - 6 - Question 3

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

Accountancy: CUET Mock Test - 6 - Question 4

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

Accountancy: CUET Mock Test - 6 - Question 5

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

Accountancy: CUET Mock Test - 6 - Question 6

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

Accountancy: CUET Mock Test - 6 - Question 7

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 7

Life Membership Fees is a capital receipt and we add it to the Capital Fund on the liabilities side of the Balance Sheet. We do not account it as an income because a life member makes a one-time payment and avails services all through his life.

Accountancy: CUET Mock Test - 6 - Question 8

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?

Accountancy: CUET Mock Test - 6 - Question 9

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 9

Some organisations provide its members an option to pay a lump sum amount to become members for the whole life. The members opting for the life membership are not required to pay a periodic subscription. As this is received only once it is transferred to the Capital fund Account in Balance Sheet. As cash is received, the cash account is debited and it is a liability, so capital/ General fund is credited.

Accountancy: CUET Mock Test - 6 - Question 10

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 10

Because accrual basis means recording items in advance. As it already include prepaid rent, outstanding salary etc.

Accountancy: CUET Mock Test - 6 - Question 11

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.

Accountancy: CUET Mock Test - 6 - Question 12

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 12

In the normal course of business, some of the expenses may be paid in advance. However, the organization may not receive the benefits from these expenses by the end of the current accounting year. We call these expenses as prepaid expenses. We treat them as current assets.

Sometimes in the normal course of business, an enterprise may have some expenses relating to which the payment is due at the end of the year. We know these expenses as Outstanding Expenses.

Wages, salary, rent, interest on the loan, etc. are examples of such expenses that may remain due at the end of the accounting year.

Accountancy: CUET Mock Test - 6 - Question 13

Which form of financing is allowed for a nonprofit organization?

Accountancy: CUET Mock Test - 6 - Question 14

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

Accountancy: CUET Mock Test - 6 - Question 15

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 15

Deficit : excess of expenditure over income.

The balance of the account, if credit, indicates surplus, i.e. excess of income over expenditure.

While the balance of the account, if debit, indicates deficit, i.e. excess of expenditure over income.

Accountancy: CUET Mock Test - 6 - Question 16

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

Accountancy: CUET Mock Test - 6 - Question 17

Income and expenditure account is based on 

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 17

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.

Accountancy: CUET Mock Test - 6 - Question 18

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

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 18

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.

Accountancy: CUET Mock Test - 6 - Question 19

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

Accountancy: CUET Mock Test - 6 - Question 20

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?

Accountancy: CUET Mock Test - 6 - Question 21

All revenues and expenses of a Non-profit organisation are reported on its statement of

Accountancy: CUET Mock Test - 6 - Question 22

The statement of _______ may be prepared under the direct or indirect method.

Accountancy: CUET Mock Test - 6 - Question 23

Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the ______ basis.

Accountancy: CUET Mock Test - 6 - Question 24

Which of the following is not an restricted fund

Accountancy: CUET Mock Test - 6 - Question 25

All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.

Accountancy: CUET Mock Test - 6 - Question 26

Normally the principal portion of an endowment will be classified as _________________ net assets.

Accountancy: CUET Mock Test - 6 - Question 27

The two types of restrictions on contributions that are classified as temporarily restricted are purpose and

Accountancy: CUET Mock Test - 6 - Question 28

Fund earmarked for investment in fixed assets is known as

Accountancy: CUET Mock Test - 6 - Question 29

Classifying expenses into program activities and supporting activities is known as the _______ basis

Accountancy: CUET Mock Test - 6 - Question 30

All assets and liabilities of Non-profit organisation are reported on its statement of

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 30

A non-profit organisation’s statement of financial position which is the balance sheet for business.It presents the financial position of an entity at a given date It is one of the main financial statements. The statement of financial position reports an entity's assets, liabilities, and the difference in their totals as of the final moment of an accounting period.

Accountancy: CUET Mock Test - 6 - Question 31

A and B are partners sharing profits and losses in the ratio of 4:1. C was a manager who received the salary of Rs. 2000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 3,39,000 before charging salary. Find total remuneration of C:

Detailed Solution for Accountancy: CUET Mock Test - 6 - Question 31

C salary = 2000 × 12

= 24000

profit after giving c salary= 339000-24000=315000

commission= (315000×5)÷105

= 15000

total salary of c = 24000 + 15000

= 39000

Accountancy: CUET Mock Test - 6 - Question 32

Profit or loss on revaluation is shared among the old partners in _______ ratio. 

Accountancy: CUET Mock Test - 6 - Question 33

On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner is

Accountancy: CUET Mock Test - 6 - Question 34

In the absence of any agreement, partners are liable to receive interest on their Loans @:

Accountancy: CUET Mock Test - 6 - Question 35

Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is: 

Accountancy: CUET Mock Test - 6 - Question 36

In absence of any agreement, partners are liable to receive interest on loans at the rate of : 

Accountancy: CUET Mock Test - 6 - Question 37

Following is the difference between partnership deed and partnership agreement.

Accountancy: CUET Mock Test - 6 - Question 38

Match the following items from column A with column B

Accountancy: CUET Mock Test - 6 - Question 39

 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.

Accountancy: CUET Mock Test - 6 - Question 40

 In the absence of an agreement, partners are entitled to 

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