Question 1
Rent expense of a non-profit organisation paid in advance is classified as a/an ____
SOLUTION
Solution : D
Rent paid in advance is classified as an asset
Question 2
Income and expenditure account is based on ___
SOLUTION
Solution : B
Income and expenditure account is based on accrual accounting
Question 3
Which of the following is to be recorded in an income and expenditure account?
SOLUTION
Solution : C
Profit on sale of fixed asset is shown in income and expenditure account
Question 4
Income and expenditure account shows ___
SOLUTION
Solution : B
Income and expenditure accounts shows surplus or deficit for the current accounting period.
Question 5
If the expense side exceeds the income side in the income and expenditure account, there will be ___
SOLUTION
Solution : B
If the expense side exceeds the income side in the income and expenditure account, there will be deficit
Question 6
The balance sheet of a non profit organisation such as a charitable hospital doesn’t contain ____
SOLUTION
Solution : D
Owner’s Equity is not a part of the balance sheet of non profit organisation
Question 7
Lifetime membership fees is shown in which side of balance sheet?
SOLUTION
Solution : B
Lifetime membership fees is shown on liabilities side of balance sheet.
Question 8
In accounting for non profit organisation, the sale of old newspapers is generally considered as a/an
SOLUTION
Solution : C
In accounting for non profit organisation, the sale of old newspapers is generally considered as an income.
Question 9
The accounts of non-trading concerns are generally maintained according to:
SOLUTION
Solution : C
The accounts of non-trading concerns are generally maintained according to double entry book keeping system.
Question 10
The main source of income for non-trading concern is:
SOLUTION
Solution : A
The main source of income for non-trading concern is subscription