Deck 24: Financial Statements and Accounting for Nonprofit Organizations

Question 1

Receipts and payment account contains

A)Only receipts and payment of current year
B)All receipts and payments
C)Income and expenditure
D)All the above

Answer 1

All receipts and payments

Question 2

Balance of receipts and payments account represents

A)Cash in hand or at bank
B)Surplus
C)Deficit
D)Reserve

Answer 2

Cash in hand or at bank

Question 3

Income and expenditure account is a ________

A)Real
B)Nominal
C)Personal
D)None of these

Answer 3

Nominal

Question 4

Any profit on sale of a cricket bat of a club will be taken to ________

A)Income and expenditure( credits side)
B)Income and expenditure debit side
C)Balance sheet assets side
D)Balance sheet liability side

Question 5

Educational institutions are

A)Profit organizations
B)Non profit organizations
C)Wealth organization
D)Social organization

Question 6

Non profit organizations trial balance shows

A)Debit
B)Credit
C)Equal balance
D)Suspense account

Question 7

Receipts and payment accounts, I & E account and balance sheet are the financial statement of

A)Company
B)Partnership firm
C)Sole trader concern
D)Nonprofit organization

Question 8

Purchase of assets are entered in nonprofit organization's book is called

A)Stock register
B)Purchase register
C)Asset register
D)Cash register

Question 9

Receipts and payment account is a ________ account

A)Personal
B)Real
C)Nominal
D)General

Question 10

In a non profit organizations cashbook shows________ in its debit side

A)Assets
B)Liabilities
C)Receipts
D)Payment

Question 11

Receipts and payment account begins with opening balance of

A)Receipts
B)Payments
C)Creditors
D)Cash

Question 12

Receipts and payment accounts includes all receipts and payments of

A)Capital nature
B)Revenue nature
C)Cash nature
D)None of these

Question 13

Receipts and payment accounts records all receipts and payments of

A)Current year
B)Previous year
C)Subsequent year
D)All of these

Question 14

While preparing the final a accounts of non trading concerns where do you show receipts and payments of special nature

A)Balance sheet
B)P & L account
C)I & E account
D)R & P account

Question 15

What does the balance of income and expenditure account shows

A)Cash
B)Debit or credit
C)Profit or loss
D)Surplus or deficit

Question 16

Donation of Rs 1000 is

A)Income
B)Capital
C)Liability
D)Asset

Question 17

Specific donation of Rs 1000 is

A)Income
B)Capital
C)Liability
D)Asset

Question 18

Donation which is given as per will is known as

A)Special donation
B)Gift
C)Legacy
D)Secret donation

Question 19

Loss on sale of asset is taken to

A)Receipts and payments account
B)Income and expenditure account
C)Balance sheet
D)Trial balance

Question 20

Honorarium is taken to

A)Receipts and payment account
B)Income and expenditure account
C)Balance sheet
D)Trial balance

Question 21

Honorarium is

A)Revenue income
B)Capital income
C)Revenue expenditure
D)Capital expenditure

Question 22

Sales of grass in the case of a sports club is

A)A capital receipts
B)A revenue receipts
C)An asset
D)A liability

Question 23

Life membership fees received by a club is treated as

A)Revenue receipts
B)Capital receipts
C)Assets
D)Special receipts

Question 24

The system of keeping incomplete record is termed as

A)Double entry system
B)Original entry system
C)Single entry system
D)journal entry system

Question 25

The trial balance of the accounts of incomplete records shows

A)debit balance
B)credit balance
C)equal balance
D)none of these

Question 26

Opening statement of affairs is prepared to find out

A)opening capital
B)opening profit
C)opening assets
D)opening liability

Question 27

In capital comparison method gross profit=

A)excess of opening capital over closing capital
B)excess of closing capital over opening capital
C)excess of sales over purchase
D)excess of income over expenditure

Question 28

Incomplete records are maintained usually by a

A)company
B)government
C)sole trader
D)partnership firm

Question 29

Creditors account is prepared to ascertain

A)cash purchases
B)cash sales
C)credit sales
D)credit purchases

Question 30

To find out credit sales which account should be prepared

A)debtors account
B)creditors account
C)sales account
D)purchases account

Question 31

Cash paid to creditors + closing creditors - opening creditors =

A)total purchase
B)cash purchase
C)credit purchases
D)total debtors

Question 32

Bills receivable as endorsed is debited to

A)creditors account
B)bills receivable account
C)debtors account
D)bills payable account

Question 33

Bills payable honored during the year will be debited to ______

A)cash account
B)bills payable
C)bills receivable
D)creditors

Question 34

Cash paid to creditors can be calculated from

A)debtors account
B)creditors account
C)bills receivable account
D)bills payable account

Question 35

Bills payable dishonored during g the year will be credited to

A)bills payable
B)creditors
C)bills receivable
D)debtors

Question 36

Rent and rates are apportioned to different departments on the basis of

A)floor area occupied
B)no of workers
C)sales of each dept
D)value of the assets kept

Question 37

The turn over ratio is used for the allocation of

A)income tax
B)bad debts
C)depreciation
D)staff welfare expenses

Question 38

Provision for unrealized profit with respect to stock when transfers are affected at transfer price is to be charged to

A)dept trading account
B)dept profit and loss account
C)either a or b
D)general profit and loss account

Question 39

Branch account under debtors system is a _______ account

A)real
B)nominal
C)personal
D)representative personal

Question 40

Branch account under stock and debtors system is a ________ account

A)real
B)nominal
C)personal
D)representative personal

Question 41

When branch A sent goods to branch B in the books of branch A debit is given to

A)head office account
B)branch B account
C)sales returns account
D)purchase returns account

Question 42

Goods sent by the head office to the branch but not received by the branch before the close of financial year are credited by head office to

A)branch account
B)trading account
C)goods sent to branch account
D)goods in transit account

Question 43

When a branch purchases fixed assets and the assets account is to be kept in the books of the head office, the branch makes the following entry

A)debits head office credits bank
B)debits branch credits head office
C)debits head office credits branch asset
D)debit branch assets credit banks

Question 44

Depreciation on branch assets under debtors system is

A)not shown separately in branch account
B)shown in branch account
C)not accounted
D)shown in the profit and loss account of head office

Question 45

Stock reserve in relation to closing stock appears

A)on the debit side of branch account
B)on the credit side of branch account
C)on the debit side of profit and loss account
D)on the credit side of profit and loss account

Question 46

Branch adjustment account is in the nature of ______

A)nominal
B)personal
C)real
D)none of these

Question 47

Cash remitted by branch but not received by the head office is debited by the head office to _____

A)goods in transit
B)cash in transit
C)branch account
D)head office account

Question 48

Goods sent by branch X to branch Y will be debited to ______

A)branch Y
B)branch X
C)head office
D)goods sent account

Question 49

Under hire purchase system depreciation is charged:

A)on cash price
B)hire purchase price
C)market price
D)none of these

Question 50

Hirer charges depreciation on

A)hire purchase price
B)cash price
C)lower of the two
D)none of these