Multiple choice questions of Subject Commerce Topic Accounting for Non Profit Organisation Questions and Answers pdf ( Accounting for Non Profit Organisation Questions and Answers Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.
Non Profit Organization Accounting Questions and Answers pdf
1. Final accounts of not-for-profit organisation includes
(a) receipt and payment account
(b) trading and profit and loss account
(c) income and expenditure account
(d) Both (a) and (c)
Ans. d
2. Receipt and payment account is a summary of
(a) income and expenses
(b) cash receipts and payments
(c) balances of various ledger accounts
(d) None of the above
Ans. b
3. Advance subscription received by a sports club will be shown
(a) on the liabilities side of the balance sheet
(b) on the credit side of income and expenditure account
(c) on the assets side of balance sheet
(d) on the debit side of income and expenditure account
Ans. a
4. Donations received for constructing a building are
(a) capital receipt
(b) revenue receipt
(c) capital expenditure
(d) revenue expenditure
Ans. b
5. The receipt and payment account is a .. account in nature.
(a) nominal
(b) real
(c) personal
(d) None of these
Ans. b
To Get Certification ENROLL NOW
6. Outstanding subscriptions are…… for a non-profit organisation.
(a) an income
(b) an asset
(c) an expense
(d) a liability
Ans. a
7. The income and expenditure account reveals
(a) surplus or deficiency
(b) cash in hand
(c) capital fund
(d) Both (a) and (b)
Ans. a
8. “The surplus of non-profit organisations are distributed among members”. The above statement is
(a) Ralse
(b) True
(c) Partly true
(d) Partly false
Ans. a
9. An amount or property received by a non-profit organisation as stated by the will of a deceased person is commonly referred to as
(a) endownment
(b) honorarium
(c) legacy
(d) donation
Ans. c
10. Investment in sinking fund by a non-profit organisation is alan
(a) liability
(b) accumulated fund
(c) asset
(d) equity
Ans.
Management of non profit organisation mcq | Non profit organizations multiple choice questions with answers
11. In non-profit accounting, sal. of old newspapers is generally considered as a/an
(a) income
(b) expenses
(c) capital receipt
(d) None of these
Ans. a
12. Non profit organisations prepare all of the following accounts except the
(a) income and expenditure account
(b) receipt and payment account
(c) balance sheet
(d) income statement
Ans. d
13. The expenses of entertainment club exceed its income. This gives rise to
(a) surplus
(b) deficit
(c) profit
(d) loss
Ans. b
14. Advance rent paid by a non-profit organisation is
(a) an expense
(b) a linbility
(c) an asset
(d) equity
Ans. c
15. Income and expenditure account is based on
(a) cash accounting
(b) accrual accounting
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Ans. b
16. Which of the following transaction will be recorded in income and expenditure account?
(a) Purchase of a fixed asset
(b) Capital expenditure incurred on a fixed asset
(c) Profit on the sale of foxed asset
(d) Receipts from saie of fixed asset
Ans. c
17. Honorarium is paid to honour a person who is not an employee of the organisation. Which of the following statements is true about honorarium payment?
(a) It is a capital expenditure
(b) It is a revenue expenditure
(c) It is not recorded in the books
(d) None of the above
Ans. b
18. Resources of a non-profit organisation’s unrestricted fund that have been set aside for a specific purpose by the Board of Directors of the organisation are accounted for in
(a) unrestricted fund
(b) endowment fund
(c) restricted current fund
(d) annuity fund
Ans. c
19. The fund used to record resources contributed to non-profit organisation on the condition that the organisation pays a fixed periodic amount to a named individual for a fixed time period is
(a) loan fund
(b) prize fund
(c) endowment fund
(d) annuity fund
Ans. d
20. “A non-profit organisation is a legal and accounting entity that is operated for the benefit of society as a whole, rather than for the benefit of an individual propreitor or a group of partners or stakeholders”. The given statement is
(a) True
(b) False
(c) Partly true
(d) Partly false
Ans. a
MCQ on Non Profit Organisation pdf | Management of Non Profit Organisation mcq
21. A not-for-profit organisation has all of the following characteristics, except that it will
(a) operate for purposes other than to provide goods or service at a profit
(b) have a positive fund balance
(c) not possess ownership interests like a corporation
(d) receive significant contributions from provides who do not expect returns
Ans. b
22. In accounting for private. not-for-profit organisations revenues and expenses are reported at amounts and gains and losses are reported at
(a) net. gross amounts
(b) gross, net
(c) gross, gross
(d) net, net
Ans. b
23. Match fund appears in the books at rs. 10,000. The match expenses amounted to rs. 6,800. A sum of rs .. to the income and expenditure account.
(a) 3.200, debited
(b) 10,000, credited
(c) 10.000, debited
(d) 3.200, credited will be
Ans. d
24. Credit balance in the income and expenditure account indicates excess of …. over
(a) expenditure, income
(b) cash income, cash expenses
(C) income, expenditure
(d) cash expenses, cash income
Ans. c
Non Profit Organisation Prepare MCQ | Non Profit Organizations Multiple Choice Questions with Answers
25. Excess of income over expenditure is in the balance sheet. .capital fund
(a) added to
(b) deducted from
(c) not added to
(d) not deducted from
Ans. a
26. Expenditure of Get Well hospital is R 2,50,000 and surplus credited to capital fund is ? B0,000. Income of the hospital is
(a) rs. 3,30,000
(b) rs.1,70.000
(c) rs. 250,000
(d) None of these
Ans. a
27. Capital fund of non-profit organisations represents
(a) excess of expenditure over income
(b) excess of income over expenditure
(c) equality between income and expenditure
(d) None of the above
Ans. b
28. Receipts and payments account does not show
(a) rent paid during the year
(b) rent received during the year
(c) outstanding rent
(d) prepaid rent
Ans. c
29. Where is ‘general donation received’ shown in the final accounts of non-profit organisations?
(a) Liabilities side of balance sheet
(b) Assets side of balance sheet
(c) Credit side of income and expenditure account
(d) Debit side of income and expenditure account
Ans. c
30. Where is specific donation received shown in the final accounts of not-for-profit organisations?
(a) Liabilities side of balance sheet
(b) Assets side of balance sheet
(c) Credit side of income and expenditure account
(d) Debit side of income and expenditure account
Ans. a
To Get Certification ENROLL NOW
For More Commerce MCQs Topic Wise Click Here