1. An entity operated to serve members rather than earn profit is called a cooperative
(a) Trading concern
(b) Welfare concern
(c) Non-trading concern
(d) Manufacturing concern
Non-trading concern
2. Non-trading concerns prepare
(a) Receipts & payments account
(b) Balance sheet
(c) Incomes & expenditures account
(d) All of the above
All of the above
3. Which account is not prepared by non-trading concerns?
(a) Profit & loss Ne
(b) Receipts & payments account
(c) Incomes & expenditures A/c
(d) All of the above
Profit & loss Ne
4. A summary of cash book represents:
(a) Incomes & expenditures account
(b) Receipts & payments account
(c) Profit & loss account
(d) None of above
Receipts & payments account
5. The main source of income of non- trading concerns is:
(a) Subscription
(b) Donation
(c) Sale of goods
(d) (a)&(b)
(a)&(b)
6. A primary report by the treasurer of non-trading concerns showing the year’s cash position is called a receipts and payments account.
(a) Cash book
(b) Receipts& payments Account
(c) Incomes & expenditures account
(d) None of above
Receipts& payments Account
7. Receipts & payments account is classified as:
(a) Real account
(b) Nominal account
(c) Personal account
Real account
8. Incomes & expenditures account are:
(a) Incomes & expenditures account
(b) Profit & loss account
(c)Receipts & payments account Surplus & deficit account
(d) Impersonal account
Profit & loss account
9. An account used to determine shortages in non-trading concerns is called an income and expenditure account.
(a) Personal account
(b) Nominal account
(c) Real account
(d) None of above
Personal account
10. Receipts & payments accounts of:
(a) Capital items
(b) Revenue items
(c) (a) & (b)
(d) None of above
(a) & (b)
11. If the credit side of income expenditures account beats side, it represents:
(a) Surplus
(b) Deficit
(c) Loss
(d) Profit
Surplus
12. If debit side of incomes expenditures account is greater its credit side, it signifies:
(a) Loss
(b) Profit
(d) Surplus
(c) Deficit
Deficit
13. Non-trading concerns are governed:
(a) Members
(b) Spare hold
(c) Promoters
(d) Investors
Members
14. If the credit side of receipts payments account exceeds its side, it is termed as:
(a) Deficit
( c) Surplus
(b) Cash at business
(d) Bank overdraft
Bank overdraft
15. If the debit side of receipts payments account is greater than credit side, it shows:
(a) Surplus
b) Bank overdraft
(e) Deficit
(d) Cash at bank
Cash at bank
16 Any subscription received by non-trading concerns is credited to:
(a) Receipts & payments account
(b) Profit & loss account
(c) Incomes & expenditures Account
(d) None of above
Incomes & expenditures Account
17.Incomes & expenditures account in debited with all:
(a) Incomes
(b) Expenses
(c) Payments
(d) Assets
Expenses
18. Accrued subscription represents:
(a) Asset
(b) Liability
(c) Expense
(d) (a) & (c)
Asset
19. Subscription acknowledged in advance is considered as:
(a) Liability
(b) Asset
(c) Income
(d) Expense
Liability
20. Subscription outstanding is credited 10:
(a) Receipts & payments account
(b) Incomes & expenditures account
(c) Profit & loss account
(d) None of above
Incomes & expenditures
21. Receipts are chronicled on the debit side of:
(a) Receipts & payments account
(b) Incomes & expenditures account
(c) Profit & loss account
(d) Balance sheet
Receipts & payments account
(b) Incomes & expenditures
22. Payments are recorded on the credit side of the:
(a) Receipts & payments account
(b) Incomes & expenditures account
(c) Profit & loss account
(d) Payments account
Receipts & payments account
23. Receipts & payments account is prepared on:
(a) Accrual basis
(b) Cash basis
(c) (a) &(c)
Cash basis
24. Incomes & expenditures account is prepared on:
(a) Accrual basis
(b) Cash basis
(c) Transaction basis
(d) None of above
Accrual basis
25. Incomes & expenditures account is started with:
(a) Opening balance
(b) Closing balance of last year
(c) Opening balance of cash & bank
(d) No balance
No balance
26. Legacy is generally treated as
(a) Income
(b) Liability
(d) Expense
(c) Asset
Liability
27. Payment of honorarium is considered
(a) Liability
(b) Asset
(c) Income
(d) Expense
Expense
28. Honorarium paid should be debited to:
(a) Receipts & payments account
(b) Profit & loss account
(c) Incomes & expenditures account
(d) Balance sheet
Incomes & expenditures account
29. The receipts and payments account is a summary of
(a) Cash account
(b) Cash book
(c) Incomes & expenditures account
(d) Profit & loss account
Cash book
30. Donation received in heavy amount is considered as:
(a) Revenue item (b) Capital item
(c) Asset
(d) None of above
Capital item
31. Which item is not recorded in the receipts & payments account? (a) Honorarium paid
(b) Subscription received
(c) Accrued salary
(d) Payment of salary
Accrued salary
33. Outstanding earnings are considered as
(a) Asset
(b) Liability
(d) Income
(c) Expense
Liability
34. Capital fund is also called:
(a) Accumulated fund
(b) General fund
(c) Profit fund
(d) Income
Income
35. Missing figure of general fund is calculated through
(a) Opening balance sheet
(b) Closing balance sheet
(c) Incomes & expenditures
(d) Receipts & payments account
Opening balance sheet
36. Accumulated fund is known as:
(a) Income
(b) Asset
(c) Liability
(d) None of above
Liability
37. Receipts from sale of magazine is considered as
(a) Revenue receipt
(b) Capital receipt
(c) Deferred revenue receipt
(d) (a)&(b)
Revenue receipt
38. Capital receipts& payments are excluded from:
(a) Balance sheet
(b) Incomes & expenditures account
(c) Receipts & payments account
(d) (b) & (c)
(b) & (c)
39. In Incomes & expenditures account:
(a) Both capital & revenue items are recorded
(6) Only capital items are recorded
(c) Only revenue items are recorded
(d) None of these
Only revenue items are recorded
40. In receipts & payments account:
(a) Both cash & non-cash items are recorded
(b) Only cash items are recorded
(c) Only non-cash recorded
(d) None of these
Only cash items are recorded
41. Any income received from fund will be presented as
(a) Accumulated fund in balance sheet
(b) Special fund in the balance sheet
(c) Income in the balance sheet
(d) Asset in the balance sheet
Special fund in the balance sheet
42. Which of the following item is entered in the receipts & payment account?
(a) Profit on sale of asset
(b) Loss on sale of asset
(c) Depreciation on asset
(d) All of the above
All of the above
43. Gift presented to chief guest at annual function in non-trading concerns is called:
(a) Reward
(b) Remuneration
(c) Honorarium
(d) Gift
Honorarium
44 Which of the following items are met presented in the balance sheet?
(a) Subscription outstanding at the end of year
(b) Subscription received for coming year
(c) Subscription received during the year
(d) Donation received in advance
Subscription received during the year
45. Which of the following is generally considered as a non-profit oriented organization?
(a) Charitable organization
(b) Corporation
(c) Audit firms
(d) Insurance companies
Charitable organization
46. The receipts and payments account of anon-profit organization is a
(a) Nominal account
(b) Real account
(c) Income statement account
Real account
49. An advance receipt of subscription from a member of a non-profit organization is considered as unearned revenue.
(a) Expense
(b) Liability
(d) Asset
(c) Equity
Asset
50. Income and expenditure account is based on:
(a) Cash accounting
(b) Accrual accounting (c) Government accounting
(d) Management accounting
Management accounting
51. Which of the following is regarded as apt to show, the purchase of a fixed ass t?
(a) Income and Expenditure account
(b) Profit and loss account
(c) Balance sheet
(d) None of these
Profit and loss account
52. Which of the following is to be recorded in an expenditure account?
(a) Purchase of a fixed asset
(b) Capital expenditure incurred on a fixed asset
(c) Profit on the sale of a fixed asset
(d) Sale of a fixed asset
Profit on the sale of a fixed asset
53. Honorarium is paid to a non-employee. Which of the following statements is true about the honorarium payment?
(a) Revenue expenditure
(b) Capital expenditure
(c) It is not recorded in the books of accounts
(d) None of these
Its Revenue expenditure
54. The capital of non-profit an organization is generally known as:
(a) Equity
(b) Accumulated fund
(c) Cash fund
(d) Financial reserve
Accumulated fund
55. When cash is received (or life membership, which one of the following double entries is passed?
(a) Cash Debit and capital Credit
(b) Life membership Debit and cash Credit
(c) Investment Debit and cash Credit
(d) Cash Debit and life membership fund Credit
Life membership Debit and cash Credit
56. Which of the following is the treatment of profit or loss on bar trading activities?
(a) Profit or loss is directly shown in the balance sheet
(b) Profit or loss is to be presented in income and expenditure account
(c) Profit and loss is credit in income statement
(d) Profit or loss is added to accumulated fund
Profit or loss is to be presented in income and expenditure account
57. Which of the following is the accounting equation for a non-profit organization?
(a) Asset Capital + Liabilities
(b) Capital + Liabilities = Assets Accumulated fund Liabilities
(c) – Assets
(d) Liabilities Accumulate fund
– Assets
58. Subscription received but not yet earned is considered as a/an:
(a) Asset (b) Liability
(c) Income
(d) Expenditure
Liability
59. A non-profit organization received $10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?
(a) $2000
(b) $8000
(d) $10,000
(c) $9000
$8000
60. $10,000 received as the annual membership subscription. Out of this, $2000 is pertaining to the previous accounting period whereas $1000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting:
(a) $10,000
(b) 59000
(c) $12,000
59000
61. The balance sheet of a non-profit organization such as a charitable hospital doesn’t contain the:
(a) Assets
(b) Building
(c) Debts
(d) Owner’s equity
Building
62. Income and expenditure accounts show:
(a) Cash available to an organization
(b) Closing capital of an organization
(c) Cash available in the bank account
(d) Surplus or deficit for the current accounting period
Surplus or deficit for the current accounting period
63. On what basis the receipts and payments account is prepared?
(a) Cash basis
(b) Accrual basis
(c) Both accrual and cash basis
(d) None of these
Cash basis
64. The amount or property received by a nonprofit organization as stated by the will of a deceased person is commonly referred to as:
(a) Donation
(b) Honorarium
(d) Endowment
(c) Legacy
Legacy
65. Investment in sinking fund by a nonprofit organization is a/an:
(a) Liability
(b) Accumulated fund
(c) Asset
(d) Equity
Asset
66. In non-profit accounting, the sale of old newspapers considered as:
(a) Expenses
(b) Expenditure
(c) Income
(d) Capital receipt
(d) $8000
Income
