Principals of Accounting ICOM Part 02 Top 500 + MCQS Download Pdf Chapter 02
Chapter – 2
Non-Profit Making Organization
Encircle the most appropriate answer from the following options
1.Non-profit making organizations
- Manufacture goods
- Buy goods
- Sell goods
- None of these
2.Example of non-profit making organization
- Fan factory
- Sugar factory
- Hospital
- Shoe factory
3.Non-profit making organizations are established for
- To manufacture goods
- Charitable or religious purpose
- To help rich people
- Profit
4.Non-profit making is also known
- Non-profit seeking concern
- Trading concern
- Non-trading concern
- “1” and “2”
5.The method for preparing the final accounts in trading concerns and non-profit making organizations are
- Same
- Easy
- Different
- Difficult
6.A person who is elected to run the club
- Secretary
- Treasurer
- President
- Chairperson
7.The basic club record or book of original entry in non-profit making organization
- Purchases book
- Sales book
- Cash book
- “1” and “2”
8.Receipts and payments account is a summary of
- Purchases book
- Cash book
- Purchases returns book
- Sales book
9.Receipt and payment account is a
- Real account
- Impersonal account
- Personal account
- Nominal account
10.Receipts and payments account records the transactions of
- Revenue nature
- Capital nature
- Revenue and capital nature
- None of the above
11.Receipts and payments account shows
- Opening and closing balances of cash
- Liabilities and capital
- Assets and liabilities
- Profit and loss
12.Receipts and payments account shows
- Incomes and expenditures
- Debit and credit balances of ledgers
- Cash receipts and payments
- Assets and liabilities
13.A receipts and payments account is similar to
- An income and expenditure account
- A cash or bank account
- A statement of affairs
- A profit or loss account
14.Receipts and payments account records transactions relating to
- Past year
- Future year
- Present year
- All of the above
15.In receipts and payments account’
- No narration is written
- No ledger reference is recorded«
- Daily cash balance cannot be ascertained
- All of the above
16.In cash book
- Each entry is followed by narration
- Ledger reference is recorded
- Each transaction is recorded in chronological order
- All of the above‘
17.In receipts and payments account
- Credit transactions are not recorded
- Non-cash items are not recorded
- “1” and “2”
- Cash transactions are not recorded
18.In non-profit making organization final accounts contains
- Income and expenditure account and balance sheet
- Receipts and payments account and balance sheet
- Receipts and payments account and statement of affairs
- Profit and loss account and balance sheet
19.It is prepared by non-profit making organizations to determine surplus or deficit
- Trading account
- Receipts and payments account
- Profit and loss account
- Income and expenditure account
20.Income and expenditure account records the transactions of
- Capital nature
- Revenue and capital nature
- Revenue nature
- None of the these
21.Non-profit seeking organisations prepare
- Manufacturing account
- Income and expenditure account
- Trading account
- Profit & loss account
22.Non-profit seeking organization income and expenditure same function as a profit seeking organizations
- Trading and profit and loss account
- Balance sheet
- Bank account
- Petty cash book
23.Income and expenditure account shows
- Cash in hand
- Cash at bank
- Surplus/deficit
- Capital account
24.All transactions relating to non-profit seeking concems are recorded in the books of account strictly according to
- Single entry system
- Treble entry system
- Double entry system
- “1” and “2”
25.In income and expenditure account
- Expenses are recorded on debit side
- Revenues are recorded on credit side
- Doesn’t start with opening balance
- All of the above
26.Capital funds is also called
- General fund
- Surplus ftmd
- Accumulated fund
- All of these
27.The amount received by the concern as per the will of the donor known is
- Donation
- Subscription
- Expense
- Legacy‘
28. Subscription received relating to current year is
- An expense
- An income
- An asset
- 1 and 2
29.Subscriptions received in advance
- Liability
- An asset
- An expense
- An income
30.Subscription received during the current year is
- Expense
- Asset
- Income
- 1&2
31. Amount received from any source by way of gift is
- Legacy
- Subscription
- Donation
- Life membership fee
32.Donation received for special purpose
- Should be credited to income and expenditure account
- Should be debited to income and expenditure account
- Should be debited as separate account and shoml in the balance sheet
- 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
- Life membership fee
- Subscription
- Donation
- Legacy
34.If the amount of life membership fees is small it is due to regular flow of members then it
- Should be debited to income and expenditure account
- Should be credited to income and expenditure account
- Should be debited to a special ftmd
- Should be credited to a special ftmd
35.The amount paid by a new partner at the time of admission
- Entrance fee
- Admission fee
- Life Membership fee
- 1 and 2
36.The amount paid to persons who are invited to deliver lectures in a club is known
- Honorarium
- Wages
- Salary
- Income
37.Amount of honorarium should be
- Debited to income and expenditure account
- Credited to income and expenditure account
- Debited to special fund
- Credited to special fund
38.Sale of newspaper should be
- Debited to income and expenditure account
- Credited to income and expenditure account
- Debited to asset account
- Credited to special fund
39.Sale of sports material should be treated as
- Expense
- Liability
- Income
- Assets
40.If there is tournament fund, then tournament expense’ and Income are transferred to
- Income and expenditure account
- Asset side of balance sheet
- Liability side of the balance sheet
- Both income & expenditure a/c and balance sheet
41.Payment of Rs. 2500 on the purchase of billiard table should be entered in
- Receipts and payments account
- Receipts and payment account and income and expenditure account
- Receipts and payments account and balance sheet
- Income and expenditure account and balance sheet
42.depreciation written-off on furniture should be entered in the
- Receipts and payments account
- Receipts and payments account and income and expenditure account
- Receipts and payments account and balance sheet
- Income and expenditure account and balance sheet
43.Life membership fee Rs. 10000, 90% capitalized should be recorded in
- Receipts and payments account
- Income and expenditure account
- Balance sheet
- All of these
44.Donations Rs.50000, 100% capitalized should be recorded in
- Receipts and payments account
- Income and expenditure account
- Receipts and payments account and balance sheet
- 1 & 2
45.Entrance fee, whole amount credited to income and expenditure account should be recorded in
- Income and expenditure account
- Receipts and payments account and income and expenditure account
- Receipts and payments account and balance sheet
- All of these
46.Entrance fee Rs. 8000 which is 900/0 capitalized, the amount should be credited to income and expenditure account is
- Rs.800
- Rs. 7,200
- Rs. 7,600
- 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
- Rs. 1800
- Rs. 7,600
- Rs. 7200
- Rs.8,000
48.If salaries Rs.300 paid during the year and Rs.25 outstanding, then the amount debited to
- Rs. 300
- Rs. 325
- Rs. 275
- Rs.375
49.If Rs.7000 paid for interest during expenditure account is Rs.780, then the amount of outstanding interest will be
- Rs. 700
- Rs. 740
- Rs. 780
- 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
- Rs.375
- Rs.525
- Rs. 325
- 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
- Rs. 1100
- Rs. 1200
- Rs. 1300
- 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
- Rs.30
- Rs. 1230
- Rs.60
- 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
- Rs. 4400
- Rs. 5600
- Rs. 6200
- 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
- Rs. 2800
- Rs. 3200
- Rs.400 d
- 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
- Rs.75
- Rs. 1425
- Rs. 1500
- 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
- Rs. 1,300
- Rs.3,400
- Rs. 3,300
- Rs. 3000
57. Individuals or institutions with activities other than trade are known as
- Manufacturing concerns
- Non-trading concerns
- Trading concerns
- Banking Concerns
58. Non-trading concerns usually maintain their accounts by:
- Double entry system
- Single entry system
- Cash system
- Nonc of these
59. Non-trading concerns prepare,
- profit & loss account
- Manufacturing account
- Trading account
- Income & expenditure account
60. Non-trading concerns do not maintain:
- Income & expenditure account
- Trading & profit & loss account
- Receipt & Payments account
- Balance & sheet
61.The preparation of an income and expenditure account is similar to the preparation of:
- Balance sheet
- Trading & profit & loss account
- Trial balance
- Work-sheet
62. Receipt & payment account is:
- A nominal account
- A real account
- A personal account
- A artificial personal account
63.A receipts & payment account is a summary of the:
- Cash book
- Balance Sheet
- Trial balance
- Profit & loss account
64.Income & expenditure a/c is credited with all:
- Expenses
- Earnings
- Assets
- liabilities
65. Receipts & payments account shows:
- income & expenditures
- Cash receipts & payments
- Assets & liabilities
- Debtors & Creditors balances
66.Income & expenditure account is debited with all.
- Expenses
- Earnings
- liabilities
- Assets
67.Income & expenditure account reveals:
- Cash-in-hand
- Surplus & deficiency
- Capital account
- Cash-in-bank
68.Specific donations appearing on the receipts side of the Receipts & payment account are to be carried to:
- Income & expenditure account as income
- Assets side of the balance sheet
- Liabilities side of the balance sheet
- Income & expenditure account as expense
69.Any profit on the sale of furniture of a cricket club will be taken to:
- Income & expenditure account
- Cash account
- Profit & loss account
- Balance sheet
70. The income & expenditure account begins with
- Debit balance
- Credit balance
- No balance
- None of these
71.The receipts & payments account records receipts and payments of:
- Capital nature only
- Revenue nature only
- Both capital & revenue nature
- None of these
72. Subscriptions forßhe current year received during the current year are to be:
- Credited to Receipts & payment a/c
- Debited to income & expenditure a/c
- Debited to Receipts & payment a/c
- Credited to income & expenditure a/c
73. Legacies debited to Receipts & payments account are:
- Credited to income & expenditure a/c
- Shown on the liabili!ies side of the balance sheet
- Shown on the asset side of Balance sheet
- Debit side of the income & expenditure a/c
74. Receipts payments account start with the,
- Opening balance
- ending balance
- Beginning ending balance
- None of these
75. Expenses Of a club, in respect there appears a fund will be shown by way of
- Deduction from the respective fund on the liabilities
- Expenditure on the debit side of pt•fit loss account
- Expenditure on the debit side of income expenditure a/c
- Add in the respective fund on the liabilities side of the balance sheet
76. Receipts and payments account is prepared at the:
- Start of the year
- End of the year
- Mid of the financial year
- None of these
77. Receipts payments account is not:
- A virtual of cash book
- A summary of cash transaction
- A nominal account
- A real account
78.Receipts are recorded on the:
- Debit side
- Credit side
- Both debit & Credit sides
- None of these
79.In Receipts & Payments account, we record receipts and payments of:
- Capital nature only
- Revenue nature only
- Both capital & revenue nature
- None of these
80.Surplus or deficit for an accounting period can be ascertained from:
- Receipts & payments account
- Balance sheet
- Income & expenditure a/c
- Cash book
81.Income & Expenditure account is equivalent to the:
- Receipts & payments account
- Balance sheet
- Cash book
- Profit & loss account
82.Income & expenditure account includes:
- Only capital items
- Only revenue item
- Both capital & revenue item
- None of these
83.Income & expenditure account prepared on:
- Cash basis
- Accrual basis
- Cash or accrual basis
- None of these
84.Income & expenditure account is prepared at the:
- Start of the year
- Mid of the year
- End of the year
- Both at the start & at the end of the
86.Income & expenditure account is a:
- Real account
- Personal account
- Artificial personal account
- Nominal account
87.Debit side of income & expenditure account records
- Expenses & losses
- Incomes & gains
- Assets
- liabilities
88.Credit side of income & expenditure account records:
- Expenses & losses
- Income & gains
- Assets
- Liabilities
89.Income & expenditure account is always accompanied by:
- Trial balance
- Cash book
- Balance Sheet
- Stone of these
90.Excess of income over expenditure is called:
- Deficit
- Surplus
- Deficit or surplus
- None of these
91.Excess of expenditure and income a/c is called:
- Deficit
- Surplus
- Both deficit & surplus
- None of these
92.Income & expenditure a/c begins with:
- Opening balance
- Closing balance
- No balance
- Both opening & closing balance
93.The difference of the two sides of receipts & payments account represents:
- Opening cash balance
- Opening bank balance
- Closing cash or bank balance
- None of these
94. Surplus or deficit is transferred to:
- Capital, fund account
- Accumulated profit
- Receipts & payments account
- Income & expenditure account
95. The account through which non-profit seeking concern ascertained surplus or deficit, is called:
- Income & expenditure a/c
- Receipts & payment a/c
- Balance sheet
- Profit loss a/c
96.The credit balance at the end in and expenditure account shows:
- Surplus
- deficit
- Both surplus and deficit
- Nonc of the•nc
97.Legacies are normally
- Treated as income
- Capitaltzcd
- Treated as revenue
- Treated as, loss
98.In income & expenditure account subscription of newspapers & periodicals goes to the
- Credit side
- Debit side
- Debit or Credit side
- None of these
99.Subscriptions outstanding in the beginning are shown in the:
- Trading a/c
- Income & expenditure a/c
- Balance sheet
- 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:
- Rs. 1000
- Rs. 800
- Rs. 1800
- 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:
- Rs. 2500
- Rs. 3000
- Rs 5000
- Rs3500
102. Specific donations are always to be taken to the:
- Profit & loss a/c
- Income & expenditure a/c
- Balance sheet
- 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.
- Rs. 2200
- Rs. 2000
- Rs. 4200
- Rs. 200
104.The entrance fees of Rs. 3000, if treated non-recurring in natures will be taken
- Income & expenditure a/c
- Balance sheet
- Both in income & expenditure a/c & Balance sheet
- None of these
105.The payment made to a television artist foc giving a performance is taken the,
- Balance sheet
- Profit & loss a/c
- Trading a/c
- Income & expenditure a/c
106.Payment of honorarium is treated as a
- Capital expenditure
- Revenue expenditure
- Capital income
- Revenue income
107.Excess of assets over liabilities is an indication of:
- Solvency
- Insolvency
- Deficiency
- Loss
108.Excess of liabilities over assets is an indication of:
- Solvency
- Insolvency
- Profit
- Surplus
109.Capital is obtained by deducting liabilities from:
- Expenditures
- Receipts
- Incomes
- Assets
- ]
110.Subscription received in advance is:
- An income
- An asset
- A liability
- An expense
111.Misc. Receipt fee income should be:
- Capitalized
- Treated as revenue
- Treated as liability
- Treated as asset
112.Sale of sports material should be treated as:
- Income
- Expense
- Liability
- Asset
113. Life-membership fees should be credited to:
- Income & expenditure a/c
- Capital fund a/c
- Profit & loss a/c
- None of these
114. Receipts and payments account shows:
- Opening & closing cash balances
- Income & expenditure
- Assets and liabilities
- None of these
115. Subscriptions in arrears are shown on the:
- Credit side of income & expenditure account and assets side of the balance sheet
- Debit side of income & expenditure a/c Liabilities side of a balance sheet
- Only on the assets side of balance sheet
- Only on the liabilities side of balance sheet
116.Income against service which has to be rendered for a long time without further payment:
- Credited to the income and expenditure a/c
- Added directly to the general or capital fund
- Debited to the income & expenditure a/c
- None of these
117. The income through admission fee should be:
- Capitalized
- Treated as revenue
- Treated as revenue unless the amount is pretty large
- Treated as liability
118.If there is a tournament fund, then tournament expenses and incomes are transferred to:
- Income & expenditure a/c
- Asset side of the balance sheet
- The liability side of the balance sheet
- Both income & expenditures A/c & Balance sheet
119. The excess of total assets over total external liabilities of a concern is called:
- Surplus
- Deficit
- Capital fund
- Profit
120.Capital fund of a non-trading concern is equal to:
- Assets + Income
- Assets + Liabilities
- Expenditure + Liabilities
- Asset— Liabilities
121.Debit side of the receipts and payments account records:
- Receipts
- Payments
- Assets
- Liabilities
122.Credit side of the receipts and payments account records:
- Receipts
- Payments
- Liabilities
- 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.
- Restricted funds
- Unrestricted funds
- Property fund
- Endowment funds
124.The funds over which third-party restrictions exist are known as:
- Restricted funds
- Unrestricted
- Endowment fund
- Property fund
125.The funds specially invested in fixed assets or already invested in fixed assets are called:
- Annuity funds
- Endowment funds
- Property funds
- Restricted funds
126.The credit balance in the income and expenditure account indicates:
- The excess of income over expenditure
- The excess of expenditure over income
- The excess of cash receipts over cash payments
- 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:
- Sale of old newspapers
- Loss on sale of old furniture
- Subscription is received in advance
- Expensed paid for the previous year
128.Which of the following items will not appear in the balance sheet of a club:
- Subscriptions received in advance
- Donations received during the year
- Entrance fees paid by new members
- 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:
- Rs. 1600
- Rs. 1700
- Rs 1400
- 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:
- Rs. 3400
- Rs. 1800
- Rs. 1600
- 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:
- Rs. 11,800
- Rs. 12, 000
- Rs. 12,500
- 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:
- Rs. 9500
- Rs. 11,500
- Rs. 11,000
- Rs. 8500
135. Any income arising from special fund will be credited to:
- Special fund in the balance sheet
- General fund in the balance sheet
- Income and expenditure account
- 1 and 3