CBSE Questions for Class 12 Commerce Accountancy Accounting For Not-For-Profit Organisations Quiz 3 - MCQExams.com

Membership fees earned is an item of ___________.
  • revenue
  • expense
  • asset
  • liability
Which of the following would appear as an operating expense in the Profit & Loss Account of a trading firm?
  • Freight inward
  • Freight outward
  • Sales returns and allowances
  • Purchases returns and allowances
Which of these is an appropriation of profit?
  • Provision for Dividend
  • Interest on debentures
  • Preliminary expenses written off
  • Provision for depreciation
Receipt and payment a/c starts with.....
  • cash/bank balance in hand
  • no balance
  • opening stock
  • debtors a/c
M/s. ABC Associates sent goods worth Rs. $$1,00,000$$ on $$11$$th March on reject or approval basis. Out of these goods worth Rs. $$40,000$$ were accepted by the customers till $$31$$st March and the remaining were still pending with the customers as on $$31$$st March. How would you deal with the goods lying with the customer as on $$31$$st March assuming that the goods were involved @ $$25\%$$ profit on sales.
  • Deduct Rs. $$60,000$$ from sales and include goods worth Rs. $$45,000$$ in closing stock
  • Deduct Rs. $$60,000$$ from sales and include goods worth Rs. $$60,000$$ in closing stock
  • Deduct Rs. $$60,000$$ from sales and debtors include goods worth Rs. $$45,000$$ in closing stock
  • Deduct Rs. $$60,000$$ from sales and include goods worth Rs. $$45,000$$ in closing stock
The Capital of ABC associated was Rs.$$25,000$$ as on $$1.1.2013$$ which rose to Rs.$$55,000$$ by the end of $$31.12.2014$$. The increase in capital of ABC associates may be due to......
  • fresh capital introduced
  • profit made during this period
  • both
  • drawings
Not-for-Profit organisations prepare balance sheets for ascertaining the ________ position of the organisation.
  • financial
  • liquidity
  • non-financial
  • both a and b
Entrance fees may also be called as _____________.
  • Specific donation
  • General donation
  • Admission fees
  • Any of the above
In determining the income of _________ people use receipts and expenditure account.
  • doctors
  • lawyers
  • company secretary
  • all of the above
Life membership fee is a ________________.
  • Revenue nature receipt
  • Capital nature receipt
  • Revenue nature expenditure
  • Capital nature expenditure
The term 'funds' as used in fund flow statement means ________________.
  • Cash
  • Current assets
  • Current liabilities
  • Current assets and liabilities
Which of the following is correct treatment of life membership fees received by non-profit organization ?
  • The amount received may be taken as capital receipt and credited to Life membership account which will be shown on the liabilities side of the balance sheet. On death of the member his contribution is transferred to capital fund.
  • The amount received may be credited to life membership account from which an amount equal to the normal annual subscription is transferred to income and expenditure ac-count and the balance is carried forward till it exhausted-Incase of death of a member, E the balance, if any, in the life membership account may be transferred to capital fund 5 amount.
  • The amount received may be credited to life membership account. Thereafter an amount calculated on the basis of the average life of the member is transferred annually to income and expenditure account and the balance is shown on the balance sheet.
  • Any of the above
Sale of old asset by non-profit organization:
  • gain or loss appears in the income and expenditure account
  • sale proceeds appears in the receipt and payment account 
  • sale proceeds will be deducted from the respective asset
  • All of the above
Taking all ______ assets with additions after charging depreciation and showing them on the assets side is one step adopted in preparation of balance sheet.
  • fixed
  • current
  • non-current
  • tangible
Income & Expenditure A/c is prepared by transfer of :
(I) Nominal accounts
(II) Real accounts
(III) Personal accounts
The correct answer is ___________________.
  • (II) and (III) only
  • (I) and (II) only
  • All (I), (II) and (III)
  • (I) only
Which of the following is generally considered as a non-profit oriented organization?
  • Charitable organization
  • Corporation
  • Audit firms
  • Insurance companies
A Club is of 150 members. Subscription per member is Rs. 500 per month. Subscription of 8 members of whole years was not received and subscription from 5 members has been received In advance for 6 months of the next year. The amount of subscription to be shown in Receipts & Payments Account will be ________________.
  • Rs. 8, 00, 000
  • Rs. 8, 67, 000
  • Rs. 8, 63, 000
  • Rs. 8, 33, 000
On the basis of following information calculate the amount will appear in the item 'stationery consumed' in Income and Expenditure Account for the year ending 31st March, 2009. 
Stock of stationary on 1.4.2008                                                     
12, 000
Amount paid for stationary during the year ended 31.3.2009
1,40,000
Stock of stationary on 31.3.2009
23,000
  • 1, 27, 200
  • 1,38,400
  • 1,29,000
  • 1,30,400
In case of a non profit organization life membership fee is treated as _____________.
  • revenue receipt
  • capital receipt
  • deferred revenue receipt
  • Either (A) or (B)
Comparing items on _________ side of the Receipts and Payment Account with ________ side of the Income and Expenditure account is one of the step adopted in preparation of balance sheet.
  • payments, income
  • receipts, payments
  • receipts, income
  • receipts, expense
A non-profit organization received 210,000 as the entrance fee of a new member. If 50% of the fees has to be capitalized, what is the amount of fees needs to be shown in the income and expenditure account ?
  • 1,10,000
  • 1,05,000
  • 2,10,000
  • None of the above
When cash is received for life membership,which one of the following double entries is passed ?
  • Cash Debit and Capital/General fund Credit
  • Life membership Debit and cash Credit
  • Investment Debit and cash Credit
  • Cash Credit and life membership fund Debit
Rent expense of a nonprofit organization paid in advance. Which of the following is the correct classification of rent paid in advance ?
  • Expense
  • Lability
  • Equity
  • Asset
From the following, find out the amount of subscriptions to be included in the Income & Expenditure Account for the year ended 31st March 2009. 
Subscription were received during the year 2008 - 2009 as follows: 
For the year 2008 - 2009 30,000
For the year 2009 - 2010 3,000
Subscription outstanding as on 31st March 2008 were Rs. 3,500 out of which Rs.500 were considered to be irrecoverable. On the same date, Subscription received in advance for 2008-2009 were Rs. 2,000.
  • 32,000
  • 37,000
  • 33,000
  • 39,000
Investment in sinking fund by a non profit organization is a/an ______________.
  • Liability
  • Accumulated fund
  • Asset
  • Equity
A not-for-profit entity has all the following characteristic except that it will ______________.
  • Operate for purposes other than to provide goods or service at a profit
  • Not have a positive fund balance
  • Not possess ownership interests like a corporation
  • Receive significant contributions from providers who do not expect returns.
The accounting information provided by not-for-profit organizations is meant for the _______ and potential contributors to meet the statutory requirement.
  • Past
  • Present
  • Future
  • None of the above
From the following details calculate the Land & Building purchased during the year -
Land & Building on 1.4.2018 =  2,00,000
Land & Building on 313.2019 =  2,13,750
Depreciation provided on land & building during the year was Rs. 11,250.
  • Rs. 25000
  • Rs. 2,500
  • Rs. 13,750
  • Nil
Admission fees received during the year should be treated ______________.
  • As capital income
  • As revenue income
  • As revenue, unless the amount involved is large
  • As capital, except for large amounts involved
Rs. 1,00,000 received as the annual membership subscription. Out of this Rs. 20,000 is pertaining to the previous accounting period, whereas Rs. 10,000 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 year.
  • 80,000
  • 90,000
  • 1,20,000
  • 1.00,000
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