ACCOUNTANCY FOR CLASS 12 CHAPTER 1 ACCOUNTING FOR NOT FOR PROFIT ORGANISATIONS, MCQS ALONG WITH ANSWERS

Free CBSE Accountancy Multiple Choice Questions for Class 12 along with answers Chapter 1: Accounting for Not for Profit Organisations. Accountancy MCQs for Class 12 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. Which one of the following is not an essential feature of a partnership?

(a) There must be a business

(b) The business must be carried on for profits

(c) The business must be carried on by all the partners

(d) There must be an agreement

Answer: (c) The business must be carried on by all the partners

2. In case a specific fund is maintained, the expenses exceeding the amount of the fluids should be recorded on ______.

(a) Debit side of the income and expenditure account

(b) Credit side of the income and expenditure account

(c) Assets side of the balance sheet

(d) Liabilities side of the balance sheet

Answer: (a) Debit side of the income and expenditure account

3. Number of partners in a partnership firm may be _______.

(a) Maximum ten

(b) Maximum one hundred

(c) Maximum fifty

(d) Maximum two

Answer: (c) Maximum fifty

4. No cash transaction will be excluded from the ______.

(a) Profit and loss account

(b) Receipts and payments

(c) Income and expenditure account

(d) Balance sheet

Answer: (b) Receipts and payments

5. Receipts and payments account usually indicate ______.

(a) Capital fund

(b) Debit balance

(c) Credit balance

(d) Surplus

Answer: (b) Debit balance

6. Liability of a partner is _____.

(a) Unlimited

(b) Determined by the partnership account

(c) Limited

(d) None of the above

Answer: (a) Unlimited

7. The task of preparing the income and expenditure account and the balance sheet commences after the preparation of the ________.

(a) Profit and loss account

(b) Trading account

(c) Cash account

(d) Trial balance

Answer: (c) Cash account

8. Balance of income and expenditure account shows ______.

(a) Capital Fund

(b) Net Profit

(c) Excess of income over expenditure or vice versa

(d) Cash in hand

Answer: (c) Excess of income over expenditure or vice versa

9. Sleeping partners are those who _______.

(a) Take an active part in the conduct of the business but provide no capital. However, salary is paid to them

(b) Do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio

(c) Take an active part in the conduct of the business but provide no capital. However, share profits and losses in the agreed ratio

(d) Do not take any part in the conduct of the business and contribute no capital. However, share profits and losses in the agreed ratio

Answer: (b) Do not take any part in the conduct of the business but provide capital and share profits and losses in the agreed ratio

10. Out of the following items, which one is shown in the receipts and payments account?

(a) Depreciation

(b) Life membership fees

(c) Accrued subscription

(d) Outstanding salary

Answer: (a) Depreciation

We trust that the offered Accountancy MCQs for Class 12 with responses Chapter 1: Accounting for Not for Profit Organisations will help you. Assuming you have any questions with respect to CBSE Class 12 Accountancy, Accounting for Not for Profit Organisations MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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