Accounting for Not-for-Profit Organisations Test 13

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Accounting for Not-for-Profit Organisations Test 13

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Weekly Quiz Competition

Question 1
1 / -0

All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.

A
Restricted

B
Permanently Restricted

C
Temporarily restricted

D
Unrestricted

Solution

If a donor does not specify a restriction on his or her contribution, the amount received by the nonprofit is recorded as an asset and called unrestricted net assets. we show the change in net assets (Revenue - Expense) as unrestricted as the amount received can be utilized for any purpose or expense.
Question 2
1 / -0

Which of the following is true relating to Income and expenditure account

A
Give fair idea of earned position

B
Records all transactions without distinguishing among current , previous and succeeding accounting periods

C
An assets account

D
Adjustments relating to prepaid and outstanding expenses etc. are made

Solution

Income and expenditure account shows the amount earned and incurred during a year after adjusting all prepaid and outstanding amount.
Question 3
1 / -0

Which form of financing is allowed for a nonprofit organization?

A
Debt

B
Sale of equity securities

C
Both

D
None

Solution

NPO are allowed to take debt for meeting their capital expenditure.
Question 4
1 / -0

Excess of expenditure over income of a Non-profit organisation is termed as______

A
Deficit

B
Profit

C
Surplus

D
Loss

Solution

NPO make income and expenditure account which shows surplus if income exceeds exp. or Surplus if Exp. exceeds income.
Question 5
1 / -0

Income and expenditure account is based on

A
Accrual accounting

B
Government accounting

C
Management accounting

D
Cash accounting

Solution

Accural basis of accounting says that record an entry whether cash or not . So, Income and Expenditure account consider all transaction whether they are in cash or not.
Question 6
1 / -0

The capital of a non-profit organization is generally known as

A
Financial reserve

B
Accumulated fund

C
Equity

D
Cash fund

Solution

The capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures. money is directed away from the accumulated fund (withdrawn) when expenditures are greater than revenues.
Question 7
1 / -0

On what basis the receipts and payments account is prepared?

A
Accrual basis

B
Both Cash basis and Accrual basis

C
Cash basis

D
None of these

Solution

receipt and payment account is summary of cash book which records only cash recipts and cash payments hence it is based on cash basis
Question 8
1 / -0

Belle, a nongovernmental not-for-profit organization, received funds during its annual campaign that were specifically pledged by the donor to another nongovernmental not-for-profit health organization. How should Belle record these funds?

A
Increase in assets and increase in liabilities

B
Increase in assets and increase in deferred revenue.

C
Increase in assets and increase in revenue.

D
Decrease in assets and decrease in fund balance.

Solution

Belle, a non-governmental NPO when receive Funds for its annual campaign, it will be a liability for them which will be recorded in balance sheet. And if Organisation pledge this fund to another non governmental NPO , it will be an assets for Belle Non govt. oranisation which is to be recorded on the assets side of balance sheet.
Question 9
1 / -0

Surplus as shown by the Income and expenditure account is

A
Divided by the capital fund

B
Multiply by the capital fund

C
Subtracted from the capital fund

D
Added to the capital fund

Solution

income and expenditure account shows surplus or deficit.Surplus of NPO is added to capital fund and deficit is deducted from capital fund.
Question 10
1 / -0

Reporting expenses by categories such as salaries, rent, utilities, etc. is known as the ______ basis.

A
Functional

B
Natural

C
Both

D
None

Solution

Natural basis report the expense by categories such as rent , salary etc.

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Re-Attempt Weekly Quiz Competition

Accounting for Not-for-Profit Organisations Test 13

Result

Accounting for Not-for-Profit Organisations Test 13

Score

-

Rank

-

SHARING IS CARING

Question 1

Restricted

Permanently Restricted

Temporarily restricted

Unrestricted

Solution

Question 2

Give fair idea of earned position

Records all transactions without distinguishing among current , previous and succeeding accounting periods

An assets account

Adjustments relating to prepaid and outstanding expenses etc. are made

Solution

Question 3

Debt

Sale of equity securities

Both

None

Solution

Question 4

Deficit

Profit

Surplus

Loss

Solution

Question 5

Accrual accounting

Government accounting

Management accounting

Cash accounting

Solution

Question 6

Financial reserve

Accumulated fund

Equity

Cash fund

Solution

Question 7

Accrual basis

Both Cash basis and Accrual basis

Cash basis

None of these

Solution

Question 8

Increase in assets and increase in liabilities

Increase in assets and increase in deferred revenue.

Increase in assets and increase in revenue.

Decrease in assets and decrease in fund balance.

Solution

Question 9

Divided by the capital fund

Multiply by the capital fund

Subtracted from the capital fund

Added to the capital fund

Solution

Question 10

Functional

Natural

Both

None

Solution

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