Financial Statements of NPO

Q.

State the meaning of 'Not-for-Profit' Organisations.

Q.

What Is a Petty Cash Book?

Q.

What are the feature of Receipt and Payment Account?

Q.

Ledger is known as the book of original entry (a) True (b) false - Commerce Q&A

1. True
2. False

Q.

National Income Is the Sum of Factor Incomes Accruing to: (Choose the Correct Alternative)

Q.

Outstanding expenses are _______ while preparing receipts and payments account

1. Receipts & Payments Account

2. Income & Expenditure Account

3. Balance sheet

4. All of these

Q.

What are the types of petty cash books?

Q.

Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Q.

What is a statement of income and expenditure called?

Q.

The accounts of non-trading concerns are generally maintained according to:

1. Mercantile accounting system

2. Cash accounting system

3. Double entry book keeping system

4. Single entry system

Q.

Non profit organisations prepare all of the following except _______

1. Receipts and payment accounts
   

2. Income and Expenditure accounts
   

3. Balance sheet
   

4. Income statement

Q.

The matching concept means ____________.

1. that the period of both expenses and revenues should match the period of cashbook

2. None of these

3. that the period of revenues should match the period of profit or loss account

4. that the period of both expenses and revenues should match the period of profit or loss account

Q.

Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Q.

Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Q.

The concept of _______________ means that transactions are recorded as and when they occur irrespective of whether money has been received or not.

1. accrual basis

2. cash basis

3. Both cash basis and accrual basis

4. None of these

Q. What are the different between income and expenditure account and receipt and payment account

Q. The matching concept means that the period of both expenses and revenues should match the period of .

1. cashbook
2. purchase book
3. profit & loss a/c
4. bank statement

Q. Explain errors of principle and give two examples with measures to rectify them.

Q. The main objective of not-for-profit organisations is _________.

1. Gain profit
2. Provide services
3. Increase owners profit
4. None of the above

Q.

Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

Q.

What is the value involved in recording transactions on the basis of source documents?

Q. The feature of errors of principle

1. affect trial balance
2. Both a and b
3. affect profit and loss account
4. None of the above

Q.

Accounting principles and systems that are followed by business for profit organisations & that are run with an objective not to earn profits are

1. Same

2. Different

3. Either same or different

4. None of these

Q. The _________ measures net profit/ loss by matching revenues and expenses according to the accounting principles.

1. trading A/c
2. manufacturing account
3. profit and loss A/c
4. none of the above

Q. The main object of audit of accounts of a joint stock company is __________.

1. Detection and prevention of frauds
2. Detection and prevention of errors and frauds
3. To find out whether the balance sheet and profit and account are property drawn up according to Companies Act and that they represent a true and fair view of the state of affairs.
4. Detection and prevention of errors

Q. Show that the treatment of items of Income and Expenditure Account when there is a specific fund for those items.

Q. Not-for-Profit organisations refer to the organisations that are used for the welfare of the _________ and are set up as charitable institutions which function without any profit motive.

1. company
2. society
3. manager
4. director

Q. Does Income and expenditure account record all types of cash & non cash transactions?

Q. The basic concepts related to P&L Account are _______________.

1. Realization concept
2. Matching concept
3. Cost concept
4. Both (a) and (b)

Q. State with reasons whether the following statement is true or false:
Compensating errors do not disturb agreement of Trial Balance.

1. True
2. False