Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization — Online MCQ Test
ACCOUNTANCY · CLASS 12 INTER II YEAR · Andhra State Board
Practice Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization with a free chapter-wise online MCQ test.
This chapter covers: This chapter details preparation of receipts and payments accounts income and expenditure accounts and balance sheets for non-profit entities..
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Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization — Important Questions & Answers
Which of the following is a 'Not-for-Profit' organization?
- A. Reliance Industries
- B. A Government School
- C. Tata Consultancy Services
- D. A Partnership Firm
Answer: B. A Government School
Not-for-Profit organizations are formed for public service, such as schools, hospitals, or clubs, rather than profit motive.
Not-for-Profit organizations are formed for public service, such as schools, hospitals, or clubs, rather than profit motive.
Receipts and Payments Account is a:
- A. Real Account
- B. Nominal Account
- C. Personal Account
- D. Representative Personal Account
Answer: A. Real Account
It is a summary of cash and bank transactions, and according to the rules of accounting, cash/bank is a Real Account.
It is a summary of cash and bank transactions, and according to the rules of accounting, cash/bank is a Real Account.
Income and Expenditure Account records:
- A. Capital items only
- B. Revenue items only
- C. Both capital and revenue items
- D. Only cash transactions
Answer: B. Revenue items only
Income and Expenditure account is similar to a Profit and Loss account and records only revenue items for the accounting period.
Income and Expenditure account is similar to a Profit and Loss account and records only revenue items for the accounting period.
A legacy received for a specific purpose should be:
- A. Credited to Income and Expenditure A/c
- B. Debited to Income and Expenditure A/c
- C. Capitalized and shown on the liabilities side
- D. Shown on the assets side
Answer: C. Capitalized and shown on the liabilities side
Legacies with specific conditions are treated as capital receipts and are added to a specific fund or capitalized.
Legacies with specific conditions are treated as capital receipts and are added to a specific fund or capitalized.
If a sports club receives a 'Match Fund', then the expenses incurred on matches are:
- A. Debited to Income and Expenditure A/c
- B. Debited to the Match Fund account in the Balance Sheet
- C. Added to the Capital Fund
- D. Credited to Income and Expenditure A/c
Answer: B. Debited to the Match Fund account in the Balance Sheet
Expenses related to a specific fund must be deducted from the fund balance in the balance sheet, not charged to the Income and Expenditure account.
Expenses related to a specific fund must be deducted from the fund balance in the balance sheet, not charged to the Income and Expenditure account.