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 the accounting equation for a non-profit organization?
  • A
    Liabilities + capital = Assets
  • B
    Accumulated fund + Liabilities = Assets
    Correct
  • C
    Liabilities = Assets + Accumulated fund
  • D
    Liabilities – capital = Assets
2
When subscription is received in advance by a Non-profit organisation it is shown in____
  • A
    None of these
  • B
    Receipt and payment account
  • C
    Income and Expenditure account
  • D
    Balance sheet
    Correct
3
The balance sheet of a non-profit organization such as a charitable hospital doesn’t contain the
  • A
    Assets
  • B
    Owner’s equity
    Correct
  • C
    Building
  • D
    Debts
4
Income and expenditure accounts show
  • A
    Closing capital of an organization
  • B
    Cash available in the bank account
  • C
    Cash available to an organization
    Correct
  • D
    Sufficient or deficit for the current accounting period
5
On what basis the receipts and payments account is prepared?
  • A
    None of these
  • B
    Both Cash basis and Accrual basis
  • C
    Cash basis
    Correct
  • D
    Accrual basis
6
The amount or property received by a non- profit organization as stated by the will of a deceased person is commonly referred to as
  • A
    Honorarium
    Correct
  • B
    Donation
  • C
    Legacy
  • D
    Equity
7
Sports fund are shown in the liabilities side but if same is invested outside it becomes____
  • A
    Expense
  • B
    Investment
    Correct
  • C
    Surplus
  • D
    Liability
8
Sale of old newspapers by a non profit organisation is treated as ___________
  • A
    Expenditure
  • B
    Capital receipt
  • C
    Income
    Correct
  • D
    Expenses
9
Nongovernmental not-for-profit organizations are required to provide which of the following external financial statements?
  • A
    Statement of comprehensive income, statement of cash flows, statement of gains and losses.
  • B
    Statement of cash flows, statement of comprehensive income, statement of unrelated business income
  • C
    Statement of financial position, statement of activities, and statement of cash flows
    Correct
  • D
    Statement of financial position, statement of comprehensive income, statement of cash flows.
10
Pahal, a nongovernmental not-for-profit organization, provides food and shelter to the homeless. Pahal received a Rs.15,000 gift with the stipulation that the funds be used to buy beds. In which net asset class should Pahal report the contribution?
  • A
    Endowment
  • B
    Permanently restricted
  • C
    None
  • D
    Temporarily restricted
    Correct
11
Belle, a nongovernmental not-for-profit organization, received funds during its annual campaign that were specifically pledged by the donor to another nongovernmental not-for-profit health organization. How should Belle record these funds?
  • A
    Increase in assets and increase in liabilities
    Correct
  • B
    Decrease in assets and decrease in fund balance.
  • C
    Increase in assets and increase in deferred revenue.
  • D
    Increase in assets and increase in revenue.
12
Which of the following financial categories are used in a nongovernmental not-for-profit organization's statement of financial position?
  • A
    Income, expenses, and unrestricted net assets
  • B
    Net assets, income, and expenses
    Correct
  • C
    Changes in unrestricted, temporarily restricted, and permanently restricted net assets
  • D
    Assets, liabilities, and net assets
13
Surplus as shown by the Income and expenditure account is
  • A
    Added to the capital fund
    Correct
  • B
    Divided by the capital fund
  • C
    Multiply by the capital fund
  • D
    Subtracted from the capital fund
14
Amount received from the sale of grass of a club should be treated as
  • A
    None
  • B
    Asset
    Correct
  • C
    Liability
  • D
    Income
15
Entrance fee is treated as
  • A
    Revenue receipt
    Correct
  • B
    None
  • C
    Capital receipt
  • D
    Both