Chapter Exam

Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization — Online MCQ Test

Q: Which of the following is a 'Not-for-Profit' organization?

Answer: B. A Government School — Not-for-Profit organizations are formed for public service, such as schools, hospitals, or clubs, rather than profit motive.

Q: Receipts and Payments Account is a:

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.

Q: Income and Expenditure Account records:

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.

Q: A legacy received for a specific purpose should be:

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.

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 for Andhra State Board CLASS 12 INTER II YEAR ACCOUNTANCY. This chapter covers: This chapter details preparation of receipts and payments accounts income and expenditure accounts and balance sheets for non-profit entities.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 12 INTER II YEAR ACCOUNTANCY — Chapter 2 ACCOUNTANCY : Accounting for Not-for-Profit Organization, with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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.

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.

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.

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.

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Chapter 3 ACCOUNTANCY : Introduction to Partnership Accounts