Accounting for Not for Profit Organisation MCQ Questions Class 12 Accountancy Chapter 1
NCERT MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation. Accounting for Not for Profit Organisation MCQ Questions with Answers from Class 12 Accountancy.
(Q1) Non-profit organisations include ——-.
(a) Religious organisation
(b) Any business unit
(c) Trading concerns
(d) Partnership firms
Ans: (a) Religious organisation
(Q2) Non-profit organisation are manage by ——.
(a) Managers
(b) Government
(c) Trust tee
(d) None of these
Ans: (c) Trust Tee.
(Q3) The financial statement prepared by Non-profit organisation are ——.
(a) Trading A/c
(b) P/L A/C
(c) Receipt & payment A/c, income and expenditure A/c and Balance sheet
(d) Only P/L A/C and Balance sheet
Ans: (c) Receipt & payment A/c, income and expenditure A/c and Balance sheet
(Q4) Not for organisation refers to organisation that work for ——-.
(a) Welfare of society
(b) Welfare for their own
(c) Earning profit
(d) Both option (a) and (c)
Ans: (a) Welfare of society.
(Q5) The reason behind not maintaining Trading and P/L A/C by non-profit organisation is that ——-.
(a) They do not manufacture or sell goods
(b) They do not pay taxes
(c) Both (a) and (d)
(d) They do not have credit transactions.
Ans: (c) Both (a) and (d)
(Q6) Funds raised by not for profit organisation are credited to ——-.
(a) Capital fund
(b) Capital Fund or general fund
(c) General reserve
(d) Receipt & payment A/C
Ans: (b) Capital Fund or general fund.
(Q7) The main source of income for non-profit organisations include ——-.
(a) Subscriptions from members
(b) Donations, grants-in-aids
(c) Both (a) and (b)
(d) Only option (b)
Ans: (c) Both (a) and (b).
(Q8) The surplus granted in the form of excess of income over expenditure in non-trading organisation is ——.
(a) Distributed to its members
(b) Not distributed to its members
(c) Added to capital fund
(d) Both option (b) and (c)
Ans: (d) Both option (b) and (c)
(Q9) The account which shows the classified summary of transactions of a cashbook in a non-trading concern is known as ——-.
(a) Trading A/c
(b) Profit & loss Appropriation A/c
(c) Receipt and payment A/c
(d) Trading & P/L A/C.
Ans: (c) Receipt and payment A/c.
(Q10) The goodwill or reputation earned by non-profit organisations depends on the basis of —–.
(a) Investments made
(b) Subscriptions received
(c) Contribution to the welfare of society
(d) Donations received
Ans: (c) Contribution towards society.
(Q11) Non-profit organisations need to maintain a stock register in order to ——-.
(a) Keep complete record of fixed assets and consumables
(b) To keep record of the grants received
(c) To maintain the record of closing & opening stock
(d) To keep a record of their income and expenses
Ans: (a) Keep complete record of fixed assets and consumables
(Q12) Instead of maintaining capital A/c, a non-profit organisation prepares ——.
(a) Capital fund or general fund
(b) General reserve
(c) Member’s capital A/c
(d) Both (a) and (b)
Ans: (a) Capital fund or general fund
(Q13) ——- Account is similar to the profit and loss A/c of a trading concern.
(a) P/L Appropiation A/c
(b) P/L Adjustment A/c
(c) Income and Expenditure A/c
(d) Receipt & Payment A/c
Ans: (c) Income and Expenditure A/c
(Q14) Salary paid, rent paid incase of nonprofit organisation etc appears on the credit side of —– account.
(a) Profit & loss A/c
(b) Income & expenditure A/c
(c) Receipt and payment A/c
(d) Trading A/c
Ans: (c) Receipt and payment A/c
(Q15) Receipt & payment A/c starts with the ——.
(a) Cash Balance at the middle o the year
(b) Stock balances
(c) Opening balance of cash/bank
(d) Only cash balance.
Ans: (c) Opening balance of cash/bank
(Q16) Income & Expenditure A/c is prepared on —— of accounting.
(a) Cash basis
(b) Accrual basis
(c) Both (a) and (b)
(d) Double entry system.
Ans: (b) Accrual basis
(Q17) Receipt & payment A/c record the transaction of —–.
(a) Previous year
(b) Current year
(c) Both previous & current year
(d) Only current year’s cash transactions
Ans: (c) Both previous & current year
(Q18) Depreciation on fixed assets which is not recorded in receipt & payment will be shown in —–.
(a) Trading A/c
(b) Income & Expenditure A/c
(c) Balance sheet
(d) Both option (b) and (c)
Ans: (d) Both option (b) and (c).
(19) Capital fund of not-for-profit organisation appears in Balance sheet on ——.
(a) Asset side
(b) Liabilities side
(c) Added with capital of members
(d) Both asset side and in liabilities side
Ans: (b) Liabilities side.
(20) Surplus in income & expenditure account refers to —–.
(a) Excess of expense over income
(b) Income equals to expenses
(c) Excess of income over expenses
(d) Opening balance of opening stock
Ans: (c) Excess of income over expenses.
(21) ‘Prize fund’, sports fund’, ‘Match fund’ etc refers to —— of not-for-profit organisations.
(a) Reserve fund
(b) Capital fund
(c) Special fund
(d) General fund
Ans: (c) Special fund.
(22) Payment to an artist for giving performance at the club is an example of —– which is shown as an expenses in income & expenditure A/c.
(a) Honorarium
(b) Revenue expenditure
(c) capital expenditure
(d) Endowment fund
Ans: (a) Honorarium.
For more update follow net explanations page