Not-For-Profit Organizations Multiple Choice Questions (NPO)
1. Which of the following is not an example of Not-for-Profit Organization :
A. Sports Club
B. College
C. Hospitals
D. Private Enterprises
Answer: D. Private Enterprises
2. Receipts and Payments Account is :
A. Personal A/c
B. Real A/c
C. Nominal Alc
D. Profit and Loss A/c
Answer: B. Real A/c
3. Income and Expenditure Account is :
A. Personal A/c
B. Real A/c
C. Nominal Alc
D. Profit and Loss A/c
Answer: C. Nominal A/c
4. Income and Expenditure Account is prepared by:
A. Trading Organisations
B. Non-trading Organisations
C. Industrial Units
D. All Institutions
Answer: B. Non-trading Organisations
5. Receipts and Payments Account generally shows
A. Capital Fund
B. Surplus or Deficit
C. Credit Balance
D. Debit Balance
Answer: D. Debit Balance
6. Income and Expenditure Account is prepared to know:
A. Net Profit
B. Gross Profit
C. Financial Position
D. Excess of Income over Expenditure
Answer: D. Excess of Income over Expenditure
7. Income and Expenditure Account shows a balance of:
A. Capital Fund
B. Cash in Hand
C. Net Profit
D. Surplus or Deficit
Answer: D. Surplus or Deficit
8. Subscriptions received in advance during an accounting year is :
A. An Expense
B. A Liability
C. An Income
D. An Asset
Answer: B. A Liability
9. Life membership fee is:
A. Earned Income
B. Liability
C. Expense
D. Income
Answer: B. Liability
10. Donations received for a special purpose will be treated as:
A. Expenditure
B. Income
C. Asset
D. Liability
Answer: D. Liability
11. Sale of grass in the case of a sports club is:
A. Capital Recript
B. Revenue Receipt
C. an asset
D. a liability
Answer: B. Revenue Receipt
12. Outstanding subscription is
A. an asset
B. a liability
C. an expense
D. an income
Answer: A. an asset
13. Income and Expenditure Account is prepared in lieu of:
A. Cash Book
B. Trading Account
C. Profit and Loss Account
D. Balance Sheet
Answer: C. Profit and Loss Account
14. Receipts and Payments Account reveals:
A. Cash at the end of the period
B. Gross Profit
C. Financial Position
D. Net Profit
Answer: A. Cash at the end of the period
15. Receipts and Payments Account is prepared in lieu of :
A. Profit and Loss Account
B. Balance Sheet
C. Profit and Loss Adjustment Account
D. Cash Book
Answer: D. Cash Book
16. Legacy is usually shown as an :
A. Asset
B. Liability
C. Income
D. Expense
Answer: B. Liability
17. Difference between the two sides of the Receipts and Payments Account reveals:
A. Net Profit or Loss
B. Expenditure
C. Net Cash Balance
D. None of these
Answer: C. Net Cash Balance
18. Income and Expenditure Account is prepared:
A. to know gross profit
B. to know net profit
C. to know excess of income over expenditure
D. to know profit on revaluation of assess and liabilities
Answer: C. to know excess of income over expenditure
19. Income and Expenditure Account is the other name of:
A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Profit and Loss Adjustment Account
Answer: B. Profit and Loss Account
20. Income and Expenditure Account records income and expenditure of:
A. Revenue nature only
B. Capital nature only
C. Both revenue and capital nature
D. None of the above
Answer: A. Revenue nature only