Accountancy 3

The institutions, which deal in activities other than trade are called:

• Trading concerns

• Non-trading concerns

• Manufacturing concerns

• None of them

The record of cash kept by the non-trading concerns is shown by:

• Receipt & payment account

• Income & loss account

• Profit & loss account

• Manufacturing account

An account, prepared to compute the surplus or deficit of a club or society is termed:

• Revenue account

• Revaluation account

• Realization account

• Income & expenditure account

When the assets of a charitable institution exceed its liabilities, the excess balance is shown as:

• Accumulated surplus

• Deficit

• Revenue income

• Net profit

The main objective of non-trading concern is to:

• Earn profit

• To create monopoly

• Welfare of society

• None of the above

Which of the following is treated as income in non-trading concern:

• Entrance fee

• Sale of asset

• Endowment fund

• Telephone charges

Gift presented to chief guest at annual function by non-trading concern is:

• Gift

• Reward

• Honorarium

• All of these

Capital fund is shown on:

• Asset side

• Liability side

• Income & expenditure account

• Receipt & payment account

Endowment fund is:

• Liability

• Asset

• Income

• Expenditure

Sale of old newspaper should be treated as:

• Liability

• Asset

• Income

• Expenditure