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NPO MCQ Question

Thank you for providing the answers. I will review the document and answers to improve my understanding of accounting concepts for not-for-profit organizations.

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Bikash Sahoo
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3K views5 pages

NPO MCQ Question

Thank you for providing the answers. I will review the document and answers to improve my understanding of accounting concepts for not-for-profit organizations.

Uploaded by

Bikash Sahoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CLASS XII ACCOUNTANCY (CHAPTER – 01 NPO)

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS


Instruction : In the following questions there are four options of which only one is correct. You have
to choose the correct option and mark in the answer sheet :
1. Sale of old newspapers is—
(A) Capital Receipt (B) Revenue Receipt
(C) Asset (D) Profit

2. 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

3. Life membership fees of non-trading concerns is—


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

4. Legacies should be treated as—


(A) Liability (B) A Revenue Receipt
(C) A Capital Receipt (D) None of these

5. Payment of Honorarium to secretary is treated as—


(A) Capital Expenditure (B) Revenue Expenditure
(C) Cash Expenses (D) None of these
6. Specific donation is—
(A) Capital Receipt (B) Revenue Receipt
(C) Asset (D) None of these

7. Income and Expenditure Account records—


(A) Capital items (B) Revenue items
(C) A and B both (D) None of these

8. Outstanding subscription is a/an—


(A) Income (B) Asset
(C) Liability (D) None of these

9. Entrance fee, unless otherwise stated, is treated as—


(A) Revenue Receipts (B) Capital Receipts
(C) Liability (D) None of these

10. Life membership fee received by a Club is—


(A) Revenue Receipt (B) Capital Receipt
(C) A and B both (D) None of these
CLASS XII ACCOUNTANCY (CHAPTER – 01 NPO)
11. All receipts of capital nature are shown in—
(A) Income and Expenditure A/c (B) Balance Sheet
(C) P. & L. A/c (D) None of these

12. All items of revenue in nature are shown in—


(A) Income and Expenditure A/c (B) Balance Sheet
(C) A and B both (D) None of these

13. Which of the following is not a not-for-profit organisation—


(A) School (B) Hospital
(C) Club (D) Partnership Firm

14. The excess of assets over liabilities in non-trading concerns is treated as—
(A) Capital Fund (B) Capital
(C) Profit (D) Net Profit

15. Subscriptions received in advance by a Club are shown on .......... side of the Balance Sheet—
(A) Assets Side (B) Liabilities Side
(C) Debit Side (D) Credit Side

16. Which of the following is not an income—


(A) Subscription (B) Donation
(C) Sale of Ticket (D) Endowment Fund

17. Income and Expenditure A/c includes—


(A) Revenue Items (B) Capital Items
(C) Both (A) and (B) (D) None of these

18. Most transactions in non-trading concerns are—


(A) Cash (B) Credit
(C) Both (A) and (B) (D) None of these
19. The main object of non-profit organisation is—
(A) To earn the Profit (B) To Serve the Society
(C) To Prepare Profit & Loss A/c (D) All the above

20. Subscription received by an organisation is—


(A) Capital Receipt (B) Revenue Receipt
(C) Both ‘A’ and ‘B’ (D) None of the above

21. Entrance fees received by a Club is treated as—


(A) Revenue Receipt (B) Capital Receipt
(C) Revenue Expenditure (D) None of these
CLASS XII ACCOUNTANCY (CHAPTER – 01 NPO)
22. 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

23. Subscription received during the year ` 50,000; Subscriptions outstanding at the end of the year
` 8,000; Subscription outstanding at the beginning of the year ` 6,000. Net Income from
subscription will be—
(A) ` 48,000 (B) ` 64,000
(C) ` 52,000 (D) ` 36,000

24. Subscription received during the year ` 1,80,000; Subscriptions outstanding at the end of the
year ` 20,000; Subscriptions received in advance at the end of the year ` 10,000. The amount of
subscription to be credited to Income and Expenditure Account will be—
(A) ` 2,10,000 (B) ` 1,90,000
(C) ` 1,70,000 (D) ` 2,00,000

25. In case specific fund is maintained, the expenses exceeding the amount of the funds, should be
recorded on—
(A) Liabilities side of the Balance Sheet
(B) Debit side of the Income and Expenditure Account
(C) Credit side of the Income and Expenditure Account
(D) Assets side of the Balance Sheet

26. 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

27. Subscriptions received in cash during the year ` 5,000, amount received in advance for the next
year is ` 300. Amount outstanding for current year was ` 400. The amount to be credited to the
Income and Expenditure Account is—
(A) ` 4,000 (B) ` 5,100
(C) ` 4,200 (D) ` 4,600.

28. If income is ` 16,000 and ‘deficit’ debited to capital fund is ` 4,300, then expenditure is—
(A) ` 16,000 (B) ` 4,300
(C) ` 20,300 (D) None of these

29. 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

30. Property received as a result of the will of the deceased person is called –
(A) Legacy (B) Honorarium
(C) Donation (D) Subscription
CLASS XII ACCOUNTANCY (CHAPTER – 01 NPO)
31. Legacies should be treated as—
(A) A Liability (B) A Revenue Receipts
(C) An Income (D) None of these

32. Life membership fees received by Club is shown in—


(A) Income and Expenditure A/c (B) Balance Sheet
(C) Receipts and Payments A/c (D) None of these

33. For non-trading organisation honorarium is—


(A) A Capital Expenditure (B) A Revenue Expenditure
(C) An Income (D) None of these

34. Receipts & Payments A/c is a—


(A) Personal A/c (B) Real A/c
(C) Nominal A/c (D) None of these

35. Income & Expenditure A/c is a—


(A) Personal A/c (B) Real A/c
(C) Nominal A/c (D) None of these .

36. Which of the following is not a not-for-profit organisation—


(A) College (B) Sports Club
(C) Maruti Udyog (D) Hospital

37. Income and Expenditure Account is prepared—


(A) By Business Organisation (B) By Industrial Organisation
(C) By Not-for-profit Organisation (D) By all Organisations

38. Receipts and Payments Account usually indicates—


(A) Surplus (B) Capital Fund (C) Debit Balance (D) Credit Balance

39. Income and Expenditure Account generally indicates—


(A) Surplus/Deficit (B) Cash Balance (C) Capital Fund (D) Net Profit/Loss

40. Donation received for specific objective will be shown—


(A) In Income and Expenditure A/c (B) On Liabilities side of B/S
(C) On Assets side of B/S (D) In none of these

41. The excess of assets over liabilities in non-trading concerns is treated as—
(A) Capital Fund (B) Capital (C) Profit (D) Net Profit
CLASS XII ACCOUNTANCY (CHAPTER – 01 NPO)
42. In non-trading concerns, excess of income over expenditure is called—
(A) Profit (B) Surplus (C) Loss (D) Deficit

43. In not-for-profit organisations, excess of expenditure over income is called—


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

[Ans. 1. (B), 2. (A), 3. (A), 4. (C), 5. (B),

6. (A), 7. (B), 8. (B), 9. (A), 10. (B), 11. (B),

12. (A), 13. (D), 14. (A), 15. (B), 16. (D),

17. (A), 18. (C), 19. (B), 20 (B), 21. (A), 22. (C),

23. (C), 24. (B), 25. (B), 26. (B), 27. (B), 28. (C),

29. (D), 30. (A), 31, (A), 32. (B), 33. (B), 34. (B),

35. (C), 36. (C), 37. (C), 38. (C), 39. (A), 40. (B),

41. (A), 42. (B), 43. (C).

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