Accountancy: CUET Mock Test - 6
40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 6
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Contribution received by a Non-profit organisation is shown in the statement of activities under the caption
_____ is a amount received by a non profit organization as per the WILL of a deceased person
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.
Which of the following is generally considered as a non profit oriented organization?
Non-profit organizations prepare all of the following accounts except the
_________ is a fixed annual payment and usually continue only during the life time of the named beneficiary
An advance receipt of subscription from a member of the non-profit organization is considered as a/an
Life Membership is a capital receipt and will be added to capital fund in _______
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.
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?
When cash is received for life membership, which one of the following double entries is passed?
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.
Which of the following statement is false regarding receipt and payment account
Because accrual basis means recording items in advance. As it already include prepaid rent, outstanding salary etc.
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.
Which of the following is true relating to Income and expenditure account
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.
Which form of financing is allowed for a nonprofit organization?
The receipts and payments account of a non-profit organization is a
Excess of expenditure over income of a Non-profit organisation is termed as______
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.
Rent expense of a non-profit organization paid in advance. Which of the following is the correct classification of rent?
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.
Which of the following is to be recorded in an income and expenditure account?
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.
The capital of a non-profit organization is generally known as
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?
All revenues and expenses of a Non-profit organisation are reported on its statement of
The statement of _______ may be prepared under the direct or indirect method.
Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the ______ basis.
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.
Normally the principal portion of an endowment will be classified as _________________ net assets.
The two types of restrictions on contributions that are classified as temporarily restricted are purpose and
Fund earmarked for investment in fixed assets is known as
Classifying expenses into program activities and supporting activities is known as the _______ basis
All assets and liabilities of Non-profit organisation are reported on its statement of
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.
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:
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
Profit or loss on revaluation is shared among the old partners in _______ ratio.
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
In the absence of any agreement, partners are liable to receive interest on their Loans @:
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:
In absence of any agreement, partners are liable to receive interest on loans at the rate of :
Following is the difference between partnership deed and partnership agreement.
Match the following items from column A with column B
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.
In the absence of an agreement, partners are entitled to
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