Accounting for Non-Profit Organizations Quiz

Which of the following is not a feature of a Non-Profit Organization?

• Profit motive

• Service motive

• Separate legal entity

• Use of surplus for objectives

Under Section 8 of the Companies Act, a non-profit entity must apply its profits towards:

• Distribution to shareholders

• Personal use of members

• Promotion of charitable objectives

• Investment in the stock market

Receipts and Payments Account is prepared on:

• Accrual basis

• Cash basis

• Hybrid basis

• Periodic basis

Which of the following appears in the Income and Expenditure Account?

• Capital receipts

• Revenue receipts

• Opening balance of cash

• Closing balance of bank

Income and Expenditure Account is similar to:

• Trading Account

• Balance Sheet

• Profit and Loss Account

• Trial Balance

Subscription received in advance is shown in the:

• Income and Expenditure Account

• Receipts and Payments Account

• Balance Sheet - Asset side

• Balance Sheet - Liability side

Entrance fee received by a non-profit organization is generally treated as:

• Revenue income

• Capital income

• Donation

• Loan

Which financial statement shows the financial position of a non-profit organization?

• Receipts and Payments Account

• Income and Expenditure Account

• Balance Sheet

• Profit and Loss Account

Donation received for building construction is:

• Revenue income

• Capital receipt

• Liability

• Operating income

The Receipts and Payments Account includes:

• Only cash transactions

• Only credit transactions

• Accrued income

• Depreciation