Not for Profit Concerns

1. 'Not for Profit' concerns do not have profit motive. (True)

2. Not for Profit concerns concentrate their efforts on maximising their profit. (False)

3. Every year, 'Bal Vikas mandir', a primary school, prepares Income and Expenditure Account. (True)

4. Charitable Institutions prepare Profit and Loss Account, at the end of every financial year. (False)

5. There is no difference between Receipts and Payments Account and Income and Expenditure Account. (False)

6. All receipts are the items of revenue income. (False)

7. Income and Expenditure Account, prepared by 'Not for Profit' concerns, must be accompanied by Balance Sheet. (True)

8. In the Income and Expenditure Account, all incomes received during the year, irrespective of the year for which thery are received, are to be recorded. (False)

9. The final balancing amount of Income and Expenditure Account, represents either Surplus or Deficit. (True)

10. Receipts and Payments Account do not have any opening balance. (False)

Not for Profit Concerns

  

1. Income and Expenditure account is a ______________ 

a. capital account

b. real account

c. personal account

d. nominal account

2. Outstanding subscription at the end of the accounting year represents _________

a. a liability

b. an expenditure

c. an asset

d. a capital fund

3. Excess of income over expenditure is termed as ___________

a. deficit

b. profit

c. surplus

d. loss

4. Not for Profit Concerns  prepares _________________ Account instead of Profit and Loss account.

a. trading

b. income and expenditure

c. cash

d. receipts and payments.

5. Usually _____________ is a major source of revenue income for 'Not for Profit Concers'

a. subscriptions

b. donations

c. legacies

d. entrance fees

6. Non cash items are not recorded in __________________

a. Receipts and Payments account

b. Income and Expenditure Account

c. Balance sheet

d. Profit and Loss account.

7. The excess of assets over liabilities is termed as __________

a. surplus

b. deficit

c. capital fund

d. loan

8. For sports club, expenditure on the purchase of sports machinery / equipments is a ___________

a. revenue

b. recurring

c. general

d. capital

9. Purchase of stationery is a ____________________ expenditure

a. capital

b. revenue

c. long term

d. deferred revenue

10. An Income and Expenditure account and a Balance Sheet is prepared as final accounts by a __________________

a. Not for Profit Concern

b. Trading Concern

c. Commercial Organisation

d. Public Limited Company.