Principals of Accounting ICOM Part 02 Top 500 + MCQS Download Pdf Chapter 02

by
Print/Downlaod pdf

Chapter – 2

Non-Profit Making Organization

Encircle the most appropriate answer from the following options

1.Non-profit making organizations

  1. Manufacture goods
  2. Buy goods
  3. Sell goods
  4. None of these

2.Example of non-profit making organization

  1. Fan factory
  2. Sugar factory
  3. Hospital
  4. Shoe factory

3.Non-profit making organizations are established for

  1. To manufacture goods
  2. Charitable or religious purpose
  3. To help rich people
  4. Profit

4.Non-profit making  is also known

  1. Non-profit seeking concern   
  2. Trading concern
  3. Non-trading concern  
  4. “1” and “2”

5.The method for preparing the final accounts in trading concerns and non-profit making organizations are

  1. Same
  2. Easy
  3. Different
  4. Difficult

6.A person who is elected to run the club

  1. Secretary       
  2. Treasurer
  3. President
  4. Chairperson

7.The basic club record or book of original entry in non-profit making organization

  1. Purchases book         
  2. Sales book
  3. Cash book    
  4. “1” and “2”

8.Receipts and payments account is a summary of

  1. Purchases book         
  2. Cash book
  3. Purchases returns book
  4. Sales book

9.Receipt and payment account is a

  1. Real account
  2. Impersonal account
  3. Personal account       
  4. Nominal account

10.Receipts and payments account records the transactions of

  1. Revenue nature         
  2. Capital nature
  3. Revenue and capital nature
  4. None of the above

11.Receipts and payments account shows

  1. Opening and closing balances of cash
  2. Liabilities and capital
  3. Assets and liabilities
  4. Profit and loss

12.Receipts and payments account shows

  1. Incomes and expenditures
  2. Debit and credit balances of ledgers
  3. Cash receipts and payments
  4. Assets and liabilities

13.A receipts and payments account is similar to

  1. An income and expenditure account
  2. A cash or bank account
  3. A statement of affairs
  4. A profit or loss account

14.Receipts and payments account records transactions relating to

  1. Past year
  2. Future year
  3. Present year  
  4. All of the above

15.In receipts and payments account’

  1. No narration is written
  2. No ledger reference is recorded«
  3. Daily cash balance cannot be ascertained
  4. All of the above

16.In cash book

  1. Each entry is followed by narration
  2. Ledger reference is recorded
  3. Each transaction is recorded in chronological order
  4. All of the above‘

17.In receipts and payments account

  1. Credit transactions are not recorded
  2. Non-cash items are not recorded
  3. “1” and “2”
  4. Cash transactions are not recorded

18.In non-profit making organization final accounts contains

  1. Income and expenditure account and balance sheet
  2. Receipts and payments account and balance sheet
  3. Receipts and payments account and statement of affairs
  4. Profit and loss account and balance sheet

19.It is prepared by non-profit making organizations to determine surplus or deficit

  1. Trading account
  2. Receipts and payments account
  3. Profit and loss account
  4. Income and expenditure account

20.Income and expenditure account records the transactions of

  1. Capital nature 
  2. Revenue and capital nature
  3. Revenue nature        
  4. None of the these

21.Non-profit seeking organisations prepare

  1. Manufacturing account
  2. Income and expenditure account
  3. Trading account
  4. Profit & loss account

22.Non-profit seeking organization income and expenditure same function as a profit seeking organizations

  1. Trading and profit and loss account
  2. Balance sheet
  3. Bank account
  4. Petty cash book

23.Income and expenditure account shows

  1. Cash in hand
  2. Cash at bank
  3. Surplus/deficit
  4. Capital account

24.All transactions relating to non-profit seeking concems are recorded in the books of account strictly according to

  1. Single entry system   
  2. Treble entry system
  3. Double entry system           
  4. “1” and “2”

25.In income and expenditure account

  1. Expenses are recorded on debit side
  2. Revenues are recorded on credit side
  3. Doesn’t start with opening balance
  4. All of the above

26.Capital funds is also called

  1. General fund  
  2. Surplus ftmd
  3. Accumulated fund     
  4. All of these

27.The amount received by the concern as per the will of the donor known is

  1. Donation         
  2. Subscription
  3. Expense         
  4. Legacy‘

28. Subscription received relating to current year is

  1. An expense    
  2. An income
  3. An asset         
  4. 1 and 2

29.Subscriptions received in advance

  1. Liability
  2. An asset
  3. An expense
  4. An income

30.Subscription received during the current year is

  1. Expense
  2. Asset
  3. Income
  4. 1&2

31. Amount received from any source by way of gift is

  1. Legacy           
  2. Subscription
  3. Donation       
  4. Life membership fee

32.Donation received for special purpose

  1. Should be credited to income and expenditure account
  2. Should be debited to income and expenditure account
  3. Should be debited as separate account and shoml in the balance sheet
  4. Should be credit as separate account and shown in the balance sheet

33.Lump sum amount received from members which enable  them to become the member for whole of the life

  1. Life membership fee
  2. Subscription
  3. Donation
  4. Legacy

34.If the amount of life membership fees is small it is due to regular flow of members then it

  1. Should be debited to income and expenditure account
  2. Should be credited to income and expenditure account
  3. Should be debited to a special ftmd
  4. Should be credited to a special ftmd

35.The amount paid by a new partner at the time of admission

  1. Entrance fee  
  2. Admission fee   
  3. Life Membership fee
  4.  1 and 2

36.The amount paid to persons who are invited to deliver lectures in a club is known

  1. Honorarium
  2. Wages
  3. Salary 
  4. Income

37.Amount of honorarium should be

  1. Debited to income and expenditure account
  2. Credited to income and expenditure account
  3. Debited to special fund          
  4. Credited to special fund

38.Sale of newspaper should be

  1. Debited to income and expenditure account
  2. Credited to income and expenditure account
  3. Debited to asset account       
  4. Credited to special fund

39.Sale of sports material should be treated as

  1. Expense
  2. Liability
  3. Income
  4. Assets

40.If there is tournament fund, then tournament expense’ and Income are transferred to

  1. Income and expenditure account
  2. Asset side of balance sheet
  3. Liability side of the balance sheet
  4. Both income & expenditure a/c and balance sheet

41.Payment of Rs. 2500 on the purchase of billiard table should be entered in

  1. Receipts and payments account
  2. Receipts and payment account and income and expenditure account
  3. Receipts and payments account and balance sheet
  4. Income and expenditure account and balance sheet

42.depreciation written-off on furniture should be entered in the

  1. Receipts and payments account
  2. Receipts and payments account and income and expenditure account
  3. Receipts and payments account and balance sheet
  4. Income and expenditure account and balance sheet

43.Life membership fee Rs. 10000, 90% capitalized should be recorded in

  1. Receipts and payments account
  2. Income and expenditure account
  3. Balance sheet
  4. All of these

44.Donations Rs.50000, 100% capitalized should be recorded in

  1. Receipts and payments account
  2. Income and expenditure account
  3. Receipts and payments account and balance sheet
  4. 1 & 2

45.Entrance fee, whole amount credited to income and expenditure account should be recorded in

  1. Income and expenditure account
  2. Receipts and payments account and income and expenditure account
  3. Receipts and payments account and balance sheet
  4. All of these

46.Entrance fee Rs. 8000 which is 900/0 capitalized, the amount should be credited to income and expenditure account is

  1. Rs.800
  2. Rs. 7,200
  3. Rs. 7,600        
  4. Rs. 8,000

47.Donations Rs. 9,000 which is 4/5th capitalized, the amount should be debited to income and expenditure account will be

  1. Rs. 1800
  2. Rs. 7,600
  3. Rs. 7200
  4. Rs.8,000

48.If salaries Rs.300 paid during the year and Rs.25 outstanding, then the amount debited to

  1. Rs. 300
  2. Rs. 325
  3. Rs. 275
  4. Rs.375

49.If Rs.7000 paid for interest during expenditure account is Rs.780, then the amount of outstanding interest will be

  1. Rs. 700
  2. Rs. 740
  3. Rs. 780
  4. Rs. 80

50.If the amount debited to Income and expenditure account is Rs. 450 for printing and stationery and outstanding is Rs.75, then the amount paid during the year will be

  1. Rs.375
  2. Rs.525
  3. Rs. 325           
  4. Rs. 530

51.If salaries  paid during the year is Rs. 1200 and prepaid salaries is Rs. 100, then the amount debited to income and expenditure account will be

  1. Rs. 1100
  2. Rs. 1200
  3. Rs. 1300
  4. Rs. 1400

52.If traveling expenses paid during the year is Rs. 1200 and amount debited to Income and expenditure account is Rs. 1 170 then the amount for prepaid traveling expenses will be

  1. Rs.30 
  2. Rs. 1230
  3. Rs.60  
  4. Rs. 1130

53.If rent received during the year is Rs.50000 and the amount of pre-receive rent is Rs.600 then the amount credited to income and expenditure account  be

  1. Rs. 4400        
  2. Rs. 5600
  3. Rs. 6200
  4. Rs. 5000

54.If the amount of accrued commission is Rs. 400 and the amount of commission received is Rs. 2800 then the amount credited to income and expenditure account will be

  1. Rs. 2800         
  2. Rs. 3200
  3. Rs.400 d
  4. Rs. 2400

55.If salaries paid during the year is Rs. 1575 and amount debited to income and expenditure account is Rs. 1500 then the amount of prepaid salaries will be

  1. Rs.75 
  2. Rs. 1425
  3. Rs. 1500         
  4. Rs. 1375

56.If the amount of prepaid rent is Rs. 150 and amount debited to income and expenditure account is Rs. 3,250 then rent paid during the year will be

  1. Rs. 1,300        
  2. Rs.3,400
  3. Rs. 3,300        
  4. Rs. 3000

57. Individuals or institutions with activities other than trade are known as

  1. Manufacturing concerns        
  2. Non-trading concerns
  3. Trading concerns       
  4. Banking Concerns

58. Non-trading concerns usually maintain their accounts by:

  1. Double entry system           
  2. Single entry system
  3. Cash system  
  4. Nonc of these

59. Non-trading concerns prepare,

  1. profit & loss account  
  2. Manufacturing account
  3. Trading account         
  4. Income & expenditure account

60. Non-trading concerns do not maintain:

  1. Income & expenditure account
  2. Trading & profit & loss account 
  3. Receipt & Payments account
  4. Balance & sheet

61.The preparation of an income and expenditure account is similar to the preparation of:

  1. Balance sheet
  2. Trading & profit & loss account
  3. Trial balance  
  4. Work-sheet

62. Receipt & payment account is:

  1. A nominal account     
  2. A real account
  3. A personal account    
  4. A artificial personal account

63.A receipts & payment account is a summary of the:

  1. Cash book    
  2. Balance Sheet
  3. Trial balance  
  4. Profit & loss account

64.Income & expenditure a/c is credited with all:

  1. Expenses       
  2. Earnings
  3. Assets
  4. liabilities

65. Receipts & payments account shows:

  1. income & expenditures          
  2. Cash receipts & payments
  3. Assets & liabilities       
  4. Debtors & Creditors balances

66.Income & expenditure account is debited with all.

  1. Expenses      
  2. Earnings 
  3. liabilities          
  4. Assets 

67.Income & expenditure account reveals:

  1. Cash-in-hand 
  2. Surplus & deficiency
  3.  Capital account         
  4. Cash-in-bank

68.Specific donations appearing on the receipts side of the Receipts & payment account are to be carried to:

  1. Income & expenditure account as income
  2. Assets side of the balance sheet
  3. Liabilities side of the balance sheet
  4. Income & expenditure account as expense

69.Any profit on the sale of furniture of a cricket club will be taken to:

  1.  Income & expenditure account
  2. Cash account
  3. Profit & loss account  
  4. Balance sheet

70. The income & expenditure account begins with

  1. Debit balance 
  2. Credit balance 
  3. No balance    
  4. None of these

71.The receipts & payments account records receipts and payments of:

  1. Capital nature only     
  2. Revenue nature only
  3. Both capital & revenue nature
  4. None of these

72. Subscriptions forßhe current year received during the current year are to be:

  1. Credited to Receipts & payment a/c
  2. Debited to income & expenditure a/c
  3. Debited to Receipts & payment a/c
  4. Credited to income & expenditure a/c

73. Legacies debited to Receipts & payments account are:

  1.  Credited to income & expenditure a/c
  2.  Shown on the liabili!ies side of the balance sheet
  3. Shown on the asset side of Balance sheet
  4. Debit side of the income & expenditure a/c

74. Receipts payments account start with the,

  1. Opening balance      
  2. ending balance
  3. Beginning ending balance
  4. None of these

75. Expenses Of a club, in respect there appears a fund will be shown by way of

  1. Deduction from the respective fund on the liabilities
  2. Expenditure on the debit side of pt•fit loss account
  3. Expenditure on the debit side of income expenditure a/c
  4. Add in the respective fund on the liabilities side of the balance sheet          

76. Receipts and payments account is prepared at the:

  1. Start of the year         
  2. End of the year
  3. Mid of the financial year        
  4. None of these

77. Receipts payments account is not:

  1. A virtual of cash book
  2. A summary of cash transaction        
  3. A nominal account  
  4. A real account

78.Receipts are recorded on the:      

  1. Debit side                 
  2. Credit  side
  3. Both debit & Credit sides                   
  4. None of these     
  1.          

79.In Receipts & Payments account, we record receipts and payments of:

  1. Capital nature only     
  2. Revenue nature only
  3. Both capital & revenue nature
  4. None of these 

80.Surplus or deficit for an accounting period can be ascertained from:

  1. Receipts & payments account
  2. Balance sheet
  3. Income & expenditure a/c
  4. Cash book

81.Income & Expenditure account is equivalent to the:

  1. Receipts & payments account
  2. Balance sheet
  3. Cash book      
  4.  Profit & loss account

82.Income & expenditure account includes:

  1. Only capital items
  2. Only revenue item
  3. Both capital & revenue item
  4. None of these

83.Income & expenditure account prepared on:

  1. Cash basis
  2. Accrual basis
  3. Cash or accrual basis
  4. None of these

84.Income & expenditure account is prepared at the:

  1. Start of the year         
  2. Mid of the year
  3. End of the year         
  4. Both at the start & at the end of the

86.Income & expenditure account is a:

  1.  Real account 
  2. Personal account
  3. Artificial personal account     
  4. Nominal account

87.Debit side of income & expenditure account records

  1. Expenses & losses  
  2. Incomes & gains
  3. Assets
  4. liabilities

88.Credit side of income & expenditure account records:

  1. Expenses & losses     
  2. Income & gains
  3. Assets
  4. Liabilities

89.Income & expenditure account is always accompanied by:

  1. Trial balance  
  2. Cash book
  3. Balance Sheet          
  4. Stone of these

90.Excess of income over expenditure is called:

  1. Deficit
  2. Surplus
  3. Deficit or surplus        
  4. None of these

91.Excess of expenditure and income a/c is called:

  1. Deficit
  2. Surplus
  3. Both deficit & surplus 
  4. None of these

92.Income & expenditure a/c begins with:

  1. Opening balance        
  2. Closing balance
  3. No balance    
  4. Both opening & closing balance

93.The difference of the two sides of receipts & payments account represents:

  1. Opening cash balance
  2. Opening bank balance  
  3. Closing cash or bank balance
  4. None of these

94. Surplus or deficit is transferred to:

  1. Capital, fund account          
  2. Accumulated profit
  3. Receipts & payments account
  4. Income & expenditure account

95. The account through which non-profit seeking concern ascertained surplus or deficit, is called:

  1. Income & expenditure a/c   
  2. Receipts & payment a/c
  3. Balance sheet
  4. Profit loss a/c

96.The credit balance at the end in and expenditure account shows:

  1. Surplus
  2. deficit
  3. Both surplus and deficit
  4. Nonc of the•nc  

97.Legacies are normally

  1. Treated as income     
  2. Capitaltzcd
  3. Treated as revenue    
  4. Treated as, loss

98.In income & expenditure account subscription of newspapers & periodicals goes to the

  1. Credit side
  2. Debit side
  3. Debit or Credit side
  4. None of these

99.Subscriptions outstanding in the beginning are shown in the:

  1. Trading a/c
  2. Income & expenditure a/c
  3. Balance sheet           
  4. Profit & loss a/c

100.Subscriptions outstanding in the beginning of a year were Rs. 1000 of which  800 were realized during the current year. The amount to be shown in the closir balance sheet will be:

  1. Rs. 1000         
  2. Rs. 800
  3. Rs. 1800         
  4. Rs. 200

101. Income & expenditure account shows subscriptions for a year at Rss 3000. Il further given that Subscriptions to the extent of Rs. 500 were outstanding for current year. The amount to be shown on the debit side of the receipts & payment account will be:

  1. Rs. 2500
  2. Rs. 3000
  3. Rs 5000
  4. Rs3500 

102. Specific donations are always to be taken to the:

  1. Profit & loss a/c          
  2. Income & expenditure a/c
  3. Balance sheet           
  4. None of these

103.There appears a match fund of Rs. 2000 in the books. The match expenses year amount Rs. 2200 the income & expenditure account will be debited by.

  1. Rs. 2200         
  2. Rs. 2000
  3. Rs. 4200         
  4. Rs. 200

104.The entrance fees of Rs. 3000, if treated non-recurring in natures will be taken

  1.  Income & expenditure a/c 
  2. Balance sheet
  3. Both in income & expenditure a/c & Balance sheet
  4. None of these

105.The payment made to a television artist foc giving a performance is taken the,

  1. Balance sheet
  2. Profit & loss a/c
  3. Trading a/c     
  4. Income & expenditure a/c

106.Payment of honorarium is treated as a

  1. Capital expenditure 
  2. Revenue expenditure
  3. Capital income           
  4. Revenue income

107.Excess of assets over liabilities is an indication of:

  1. Solvency       
  2. Insolvency
  3. Deficiency   
  4. Loss

108.Excess of liabilities over assets is an indication of:

  1. Solvency
  2. Insolvency
  3. Profit  
  4. Surplus

109.Capital is obtained by deducting liabilities from:

  1. Expenditures
  2. Receipts
  3. Incomes
  4. Assets
  5. ]

110.Subscription received in advance is:

  1. An income      
  2. An asset
  3. A liability       
  4. An expense

111.Misc. Receipt fee income should be:

  1. Capitalized     
  2. Treated as revenue
  3. Treated as liability      
  4. Treated as asset

112.Sale of sports material should be treated as:     

  1. Income
  2. Expense
  3. Liability
  4. Asset

113. Life-membership fees should be credited to:

  1. Income & expenditure a/c     
  2. Capital fund a/c
  3. Profit & loss a/c          
  4. None of these

114. Receipts and payments account shows:

  1. Opening & closing cash balances
  2. Income & expenditure
  3. Assets and liabilities
  4. None of these

115. Subscriptions in arrears are shown on the:

  1. Credit side of income & expenditure account and assets side of the balance sheet
  2. Debit side of income & expenditure a/c Liabilities side of a balance sheet
  3. Only on the assets side of balance sheet
  4. Only on the liabilities side of balance sheet

116.Income against service which has to be rendered for a long time without further payment:

  1. Credited to the income and expenditure a/c
  2. Added directly to the general or capital fund
  3. Debited to the income & expenditure a/c
  4.  None of these

117. The income through admission fee should be:

  1. Capitalized
  2. Treated as revenue
  3. Treated as revenue unless the amount is pretty large
  4. Treated as liability

118.If there is a tournament fund, then tournament expenses and incomes are transferred to:

  1. Income & expenditure a/c
  2. Asset side of the balance sheet
  3. The liability side of the balance sheet
  4. Both income & expenditures A/c & Balance sheet

119. The excess of total assets over total external liabilities of a concern is called:

  1. Surplus
  2. Deficit
  3. Capital fund
  4. Profit

120.Capital fund of a non-trading concern is equal to:

  1. Assets + Income        
  2. Assets + Liabilities
  3. Expenditure + Liabilities         
  4. Asset— Liabilities   
  1.  

121.Debit side of the receipts and payments account records:        

  1. Receipts        
  2. Payments
  3.  Assets
  4. Liabilities

122.Credit side of the receipts and payments account records:

  1. Receipts         
  2. Payments
  3. Liabilities
  4. Assets\

123.The funds available for use at the full discretion of the board and is referred to as general fund or capital fund, is called as.

  1. Restricted funds         
  2. Unrestricted funds
  3. Property fund 
  4. Endowment funds

124.The funds over which third-party restrictions exist are known as:

  1. Restricted funds      
  2. Unrestricted
  3. Endowment fund       
  4. Property fund

125.The funds specially invested in fixed assets or already invested in fixed assets are called:

  1. Annuity funds 
  2.  Endowment funds
  3. Property funds         
  4. Restricted funds

126.The credit balance in the income and expenditure account indicates:

  1. The excess of income over expenditure
  2. The excess of expenditure over income
  3. The excess of cash receipts over cash payments    
  4. The excess cash payments over cash receipts

127.Which of the following items should not be entered in Receipts and payments account of a club:

  1. Sale of old newspapers
  2. Loss on sale of old furniture
  3. Subscription is received in advance
  4. Expensed paid for the previous year

128.Which of the following items will not appear in the balance sheet of a club:

  1. Subscriptions received in advance
  2. Donations received during the year
  3. Entrance fees paid by new members
  4. Subscriptions relating to previous years. Collected during the year

129. Stock of stationary on I st January, 1990 Rs.300,

Payment for Stationary during 1990  Rs. 1400         

Stock of stationery on 3 1 st December 1990.           Rs. 200

.The amount to be charged to Income and expenditure account on account of stationery is:

  1. Rs. 1600
  2. Rs. 1700
  3. Rs  1400
  4. Rs. 1500

131.Amount received for special fund Rs. 3400, and expenses incurred from the fund Rs. 1800. The amount to be credited to income and expenditure account:

  1. Rs. 3400         
  2. Rs. 1800
  3. Rs. 1600         
  4. Nil

132.The Receipts and payments account Shows the following details:

Subscription    Arrears            500

   Current                          Rs. 10, 500

   Advance                                800

133.There are 1200 members each paying an annual Subscription of Rs. 10. The amount to be credited to income and expenditure account will be:

  1. Rs. 11,800
  2. Rs. 12, 000
  3. Rs. 12,500
  4. Rs. 1 1, 300

134.Income and expenditure account shows subscription at Rs. 10,000. Subscriptions occurred at the beginning and end of the year are Rs. 1,000 and Rs. 1500 respectively. The amount that figures in receipts and payments account under the head of subscription will be:

  1. Rs. 9500
  2. Rs. 11,500
  3. Rs. 11,000      
  4. Rs. 8500

135. Any income arising from special fund will be credited to:         

  1. Special fund in the balance sheet  
  2. General fund in the balance sheet
  3. Income and expenditure account
  4. 1 and 3

<Previous Page
Take Quiz No 02
Next page >

Post Views: 791