Financial Statements Of Non-Profit Organization CBSE Questions & Answers

Financial Statements Of Non-Profit Organization

This is Accountancy Class 11 Financial Statements of Non-Profit Organization CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Which of the following is generally considered as a non profit oriented organization?
  • A
    Corporation
  • B
    Charitable organization
    Correct
  • C
    Audit firm
  • D
    Insurance companies
2
The receipts and payments account of a non-profit organization is a
  • A
    Financial statement
  • B
    Income statement account
  • C
    Real account
    Correct
  • D
    Nominal account
3
Non-profit organizations prepare all of the following accounts except the
  • A
    Income and expenditure account
  • B
    Balance sheet
  • C
    Income statement
    Correct
  • D
    Receipt and payment account
4
Excess of expenditure over income of a Non-profit organisation is termed as______
  • A
    Loss
  • B
    Profit
  • C
    Surplus
  • D
    Deficit
    Correct
5
_________ is a fixed annual payment and usually continue only during the life time of the named beneficiary
  • A
    Annuity
    Correct
  • B
    Loan
  • C
    Endowment
  • D
    Legacy
6
Rent expense of a non-profit organization paid in advance. Which of the following is the correct classification of rent?
  • A
    Asset
    Correct
  • B
    Expense
  • C
    Equity
  • D
    Liability
7
An advance receipt of subscription from a member of the non-profit organization is considered as a/an
  • A
    Liability
    Correct
  • B
    Asset
  • C
    Equity
  • D
    Expense
8
Income and expenditure account is based on
  • A
    Accrual accounting
    Correct
  • B
    Management accounting
  • C
    Cash accounting
  • D
    Government accounting
9
Life Membership is a capital receipt and will be added to capital fund in _______
  • A
    Profit and loss account
  • B
    Income expenditure account
  • C
    None of these
  • D
    Balance sheet
    Correct
10
Which of the following is to be recorded in an income and expenditure account?
  • A
    Purchase of a fixed assets
  • B
    Profit on sale of fixed assets
    Correct
  • C
    Sale of a fixed assets
  • D
    Capital expenditure incurred on a fixed assets
11
Honorarium is a kind of remuneration paid to a person who is not the employee of a non-profit organization. Which of the following statements is true about the honorarium payment?
  • A
    It is not recorded in the books of accounts
  • B
    It is capital expenditure
  • C
    None of these
  • D
    It is a revenue expenditure
    Correct
12
The capital of a non-profit organization is generally known as
  • A
    Accumulated fund
    Correct
  • B
    Financial reserve
  • C
    Cash fund
  • D
    Equity
13
When cash is received for life membership, which one of the following double entries is passed?
  • A
    Investment debit and cash credit
  • B
    Cash debit and capital credit
  • C
    Cash Debit and life membership fund credit
    Correct
  • D
    Life membership debit and cash credit
14
XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities?
  • A
    Profit and loss is added to accumulated fund
  • B
    Profit and loss is credit in income statement
  • C
    Profit and loss to be presented in Income expenditure account
  • D
    Profit and loss to be presented in income and expenditure account
    Correct
15
Which of the following statement is false regarding receipt and payment account
  • A
    Give fair idea of earned position
  • B
    Based on accrual basis
    Correct
  • C
    An assets account
  • D
    Records all transactions without distinguishing among current , previous and succeeding accounting periods