Accounting for Not-for-Profit Organisations Test 5

Result

Accounting for Not-for-Profit Organisations Test 5

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Funds raised by Not-for-Profit organisations are credited to ________.

A
Capital fund

B
Security reserve

C
Security premium

D
General fund

Solution

Funds raised by Non-for-Profit organizations through various sources are credited to the capital fund. Capital fund is the excess of assets over liabilities. So, the excess amount which is mostly the income of the organization is the funds raised by them.
Question 2
1 / -0

Which of the following change(s) does / do not appear in a cash flow statement?

A
Issue of equity shares

B
Conversion of all FCDs into equity shares

C
Bonus issue of equity shares

D
All of the above

E
Both (B) and (C)
Question 3
1 / -0

Interest on specific fund investment given effect as _____________.

A
Added to asset

B
Deducted from assets

C
Added to liabilties

D
Deducted from liabilties

Solution

The interest earned by the organisation on certain investment made by people is added to the liabilities. This is because the interest earned has to be paid to the investors since it is a not-for-profit organisation.
Question 4
1 / -0

Not-for-Profit Organisations earn their reputation on the basis of ________.

A
customers satisfaction

B
contribution towards the social welfare

C
owners satisfaction

D
all of the above

Solution

Non-for-profit organizations earn their reputation on the basis of contributions made for social welfare. They are set up for the purpose of promoting science, commerce, social cause, education, etc. Their main purpose is not to earn profit but to provide services.
Question 5
1 / -0

Opening capital fund is Rs.64,000
Surplus is Rs.20,000
Life membership fess is Rs.15,000
Bank overdraft Rs.16,000
State the amount of capital fund:

A
Rs.50000

B
Rs.99,000

C
Rs.70,000

D
Rs.84,000

Solution

Capital fund = Opening + life membership fees + surplus during the year.
= 64,000 + 16,000 + 20,000
= Rs-99.000.
Note:- Bank overdraft does not form a part of capital fund. It will be shown on the liabilities side separately.
Question 6
1 / -0

_____________ is/are example(s) of revenue receipts.

A
Interest on fixed deposits held with the bank

B
Capital Grant received from Central Government for setting up new Plant.

C
Short term loan raised from PSU bank to augment working capital requirement

D
Proceed of debentures issued

Solution

b'Revenue receipts are the receipts which arise through core business activities. They occur again and again however their benefits can be enjoyed only in current accounting period. Capital Grant received from government does not arise from core business activities. Short term loan raised also does not occur again and again. These are capital receipts. Interest on fixed deposit arises every year. These are part of normal business operations. This is revenue receipt. '
Question 7
1 / -0

Capital receipt are shown in _______.

A
Profit and loss A/c

B
Balance sheet

C
Trading A/c

D
Added to capital fund

Solution

Receipts which are non-recurring by nature and whose benefit is enjoyed over a long period are known as capital receipt e.g. sale proceeds of fixed assets etc. The benefit is enjoyed for many years in future. That's why it can not be shown in Profit and loss account. Trading account shows only direct expenses. Capital receipts does not increase the capital of owner. So it also can't be added to capital fund.
Question 8
1 / -0

Net loss reduces _______.

A
cash in hand

B
capital fund

C
gross assets

D
all the three

Solution

Balance of Profit and loss account show net profit or net loss of the business. This balance is transferred to capital in balance sheet. Net profit is added to capital fund and increase capital fund and net loss is deducted from capital fund and it reduces capital fund.
Question 9
1 / -0

Legacies are generally ______.

A
treated revenue expenses

B
product cost

C
period cost

D
capitalized

Solution

Legacies are generally capitalized
Question 10
1 / -0

________ is/are a capital receipt.

A
Money raised through issue of shares

B
Bank loan

C
Sale of investments

D
All of the above

Solution

Option D is correct. Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the firm. They are non-recurring or non-routine in nature. Sale of investments leads to reduction in assets. Bank loan and money raised through issue of shares create liability for the firm. All are capital receipts. '

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Accounting for Not-for-Profit Organisations Test 5

Result

Accounting for Not-for-Profit Organisations Test 5

Score

-

Rank

-

SHARING IS CARING

Question 1

Capital fund

Security reserve

Security premium

General fund

Solution

Question 2

Issue of equity shares

Conversion of all FCDs into equity shares

Bonus issue of equity shares

All of the above

Both (B) and (C)

Question 3

Added to asset

Deducted from assets

Added to liabilties

Deducted from liabilties

Solution

Question 4

customers satisfaction

contribution towards the social welfare

owners satisfaction

all of the above

Solution

Question 5

Rs.50000

Rs.99,000

Rs.70,000

Rs.84,000

Solution

Question 6

Interest on fixed deposits held with the bank

Capital Grant received from Central Government for setting up new Plant.

Short term loan raised from PSU bank to augment working capital requirement

Proceed of debentures issued

Solution

Question 7

Profit and loss A/c

Balance sheet

Trading A/c

Added to capital fund

Solution

Question 8

cash in hand

capital fund

gross assets

all the three

Solution

Question 9

treated revenue expenses

product cost

period cost

capitalized

Solution

Question 10

Money raised through issue of shares

Bank loan

Sale of investments

All of the above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.