Home » MCQs » Non-profit organisations accounts MCQs


1)

Which of the following is generally considered as a non profit oriented organization?

A)  Charitable organizationRIGHT ANSWER!!!

B)  CorporationWRONG ANSWER

C)  Audit firmsWRONG ANSWER

D)  Insurance companiesWRONG ANSWER


2)

The receipts and payments account of a non-profit organization is a

A)  Nominal accountWRONG ANSWER

B)  Real account RIGHT ANSWER!!!

C)  Income statement account WRONG ANSWER

D)  Financial statementWRONG ANSWER


3)

Non-profit organizations prepare all of the following accounts except the

A)  Receipts and payment accounts WRONG ANSWER

B)  Income and Expenditure accounts WRONG ANSWER

C)  Balance sheetWRONG ANSWER

D)  Income statement RIGHT ANSWER!!!


4)

Expenditures greater than incomes of a non-profit organization give rise to a

A)  Loss WRONG ANSWER

B)  Profit WRONG ANSWER

C)  Surplus WRONG ANSWER

D)  Deficit RIGHT ANSWER!!!


5)

Rent expense of a non-profit organization paid in advance. Which of the following is the correct classification of rent?

A)  ExpenseWRONG ANSWER

B)  LiabilityWRONG ANSWER

C)  EquityWRONG ANSWER

D)  AssetRIGHT ANSWER!!!


6)

An advance receipt of subscription from a member of the non-profit organization is considered as a/an

A)  ExpenseWRONG ANSWER

B)  LiabilityRIGHT ANSWER!!!

C)  EquityWRONG ANSWER

D)  AssetWRONG ANSWER


7)

Income and expenditure account is based on

A)  Cash accounting WRONG ANSWER

B)  Accrual accountingRIGHT ANSWER!!!

C)  Government accounting WRONG ANSWER

D)  Management accounting WRONG ANSWER


8)

Which of the following is regarded as apt to show the purchase of a fixed asset?

A)  Income and Expenditure account WRONG ANSWER

B)  Profit and loss accountWRONG ANSWER

C)  Balance sheet RIGHT ANSWER!!!


9)

Which of the following is to be recorded in an income and expenditure account?

A)  Purchase of a fixed asset WRONG ANSWER

B)  Capital expenditure incurred on a fixed asset WRONG ANSWER

C)  Profit on the sale of a fixed asset RIGHT ANSWER!!!

D)  Sale of a fixed assetWRONG ANSWER


10)

Honorarium is a kind of remuneration paid to a person who is not the employee of a non-profit organization. Which of the following statements is true about the honorarium payment?

A)  It’s a revenue expenditure RIGHT ANSWER!!!

B)  It’s a Capital expenditure WRONG ANSWER

C)  It is not recorded in the books of accounts WRONG ANSWER






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