Deck 3: Non-Profit Organizations and Financial Statements

Question 1

The public hospitals do not carry the activities with an intention of earning profits.

A)True
B)False
C)none
D)all

Answer 1

True

Question 2

The Income and Expenditure Account is a summary of cash transactions.

A)True
B)False
C)none
D)all

Answer 2

False

Question 3

The Income and Expenditure Account includes all revenue expenses and incomeirrespective of its cash flow

A)True
B)False
C)none
D)all

Answer 3

True

Question 4

The Income and Expenditure Account is always accompanied with a cash flow statement

A)True
B)False
C)none
D)all

Question 5

The fees are collected only once at the time of admission of a member, hence Entrance Fees should be treated as 'Revenue Receipt'.

A)True
B)False
C)none
D)all

Question 6

The fees received from life members is not a periodic subscription, hence are to be capitalized

A)True
B)False
C)none
D)all

Question 7

) A Receipts and Payments Account is nothing but a summary of all capital receipts and payments.

A)True
B)False
C)none
D)all

Question 8

Charitable Organizations promote welfare of the common man, in general

A)True
B)False
C)none
D)all

Question 9

A Receipts and Payments Account record only non-cash items.

A)True
B)False
C)none
D)all

Question 10

Receipts and Payments A/c is a summary of:

A)All Capital Receipts and Payments
B)All Revenue Receipts and Payments
C)All Revenue and Capital Receipts and Payments
D)None of the above

Question 11

Out of the following items, which one is shown in the Receipts and Payments Account?

A)Outstanding Salary
B)Depreciation
C)Life Membership Fees
D)Accrued Subscription

Question 12

In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:

A)Liabilities side of the Balance Sheet
B)Debit side the Income and Expenditure Account
C)Credit side of the Income and Expenditure Account
D)Assets side of the Balance Sheet

Question 13

All receipts from sale of consumable items are treated as:

A)Capital Receipts
B)Revenue Receipts
C)Both (a) and (b)
D)None of these

Question 14

Capital fund is calculated:

A)Income-Expenditure
B)Assets Liabilities
C)Capital + Liabilities
D)None of these

Question 15

Subscription received in advance during the current year is:

A)An income
B)An Asset
C)A liability
D)None of these

Question 16

Balance of Income and Expenditure Account shows:

A)Cash in hand
B)Capital fund
C)Net Profit
D)Excess of Income over expenditure or vice versa

Question 17

Property received as a result of the will of the deceased person is called:

A)Lagacy
B)Honorarium
C)Donation
D)Subscription

Question 18

Receipts and Payments Account usually indicates:

A)Surplus
B)Capital fund
C)Debit Balance
D)Credit Balance

Question 19

Income and Expenditure Account generally indicates:

A)Surplus/ deficit
B)Cash balance
C)Capital fund
D)Net profit/Loss

Question 20

Donation received for a special purpose:

A)Should be credited to Income and Expenditure A/c
B)Should be credited to a separate account and shown in the Balance Sheet
C)Should be shown on the Assets side of the Balance Sheet
D)None of these

Question 21

In not-for-profit organisation, excess of expenditure over income is called :

A)Loss
B)Profit
C)Deficit
D)Surplus

Question 22

Which of the following is a non-profitable organisation ?

A)Jharkhand Academic Council
B)Tata Steel
C)Air India
D)Reliance

Question 23

Income and Expenditure Account is preparedly :

A)Trending Organisation
B)Non-trading Organisation
C)Both (a) and (b)
D)None of these

Question 24

Sale of old newspapers is:

A)Capital Receipt
B)Revenue Receipt
C)Asset
D)Profit

Question 25

Income and expenses related to the prize fund is shown in:

A)Income and Expenditure Account
B)Assets side of the Balance Sheet
C)Liabilities side of the Balance Sheet
D)Cash Account