Practice Test

1) Receipts and payment account is a _________ account.

2) Incomes and Expenditure account includes only ___________ items.

3) Receipts and payment account includes both revenue and ______ items

4) Non profit organisation never engages in ________ activities.

5) Not for profit organisation renders _______ services to public at large.

6) Generally, the opening balance on Receipts and payments account shows _________ balance/overdraft.

7) Outstanding and/or prepaid items are not included in _________ account.

8) Bank overdraft indicates _________ balance.

9) Not-profit organisation is also called _________ organisation.

10) Surplus is ______ to and Deficit is ________ from the capital fund in the balance sheet.

11) Service organisation prepares _______ A/c to find out excess of income over expenditure.

12) Life membership fees is capital in receipts and therefore added to ________.

13) Service organisation prepares _______ at the end of the year to find out financial position.

14) Special fund/donations should be ____________ and therefore added to ___________.

15) The closing balance of R & P A/c usually represents _________.

16) In statement of profit and loss, the positive answer indicates ______ and _________ answer shows loss.

17) R & P A/c falls under the category of ________ A/c.

18) Receipt & Payment A/c is the summary of __________ transactions recorded.

19) I & E A/c is the records of ________.

20) I & E A/c resembles the ________ A/c of a trading concern.

21) Debit side of R & P A/c shows cash _________.

22) Credit side of R & P A/c shows cash _________.

23) Subscription received in advance during the accounting year is ______.

24) Which of the following items will not appear in the balance sheet of a club?

25) ________ Accounts starts with the opening cash balance.

26) For a liabrary, expenditure on purchase of books is a __________ expenditure.

27) In I & E A/c, Excess of income over expenditure is termed as ________.

28) In I & E A/c, Excess of expenditure over income is termed as ________.

29) A sum of money, goods or any asset given to someone voluntarily, without any compensation is called ________.

30) Expenditure on purchase of building is a ________ expenditure.

31) Income & Expenditure Account includes items of ______ nature only.

32) Income & expenditure account resembles the ________ A/c of a trading concern.

33) A donation received for a specific purpose is a _________.

34) Receipts & Payment Account makes no distinction between ______ & Revenue.

35) Closing balance of Receipts & Payments Account represnts ____.

36) Expenses of last year and next year are _____ while deciding expenses for the year.

37) Special donations are shown in the balance sheet on ______ side.

38) Subscription of the next year received during the currrent year are shown on _______ side of Balance sheet.

39) Outstanding expenses for the current year are _______ to expenses while preparing Income & Expenditure Account.

40) Any revenue expense for which a separate fund is available will be

41) Sale of old materials must beshown in credit side

42) The information for preparation of R & P Account is taken from:

43) Any Income arising from special fund will be credited to

44) R & P A/c records receipts and payment of

45) Income & Expenditure Account is a

46) A 'Not for profit' organisation never trading activities.

47) Only the capital expenses are shown in the Receipts and Payments account.

48) Sale of old materials must be shown in credit side of incomes and expenditure account.

49) Balance sheet indicates financial status of an organisation.

50) Receipts and Payments account records receipts and payments of both capital and revenue nature.

51) Incomes and Expenditures account is a real account but not a nominal account.

52) Accrued expenses and advance incomes need not to be adjusted in Non Profit institutions.

53) Lump sum Legacies are generally capitalized and credited to balance sheet.

54) Excess of liabilities over assets is called as capital fund.

55) Entrance fees to a sports club are to be shown as payment.

56) A public library is a 'Not for profit' concern.

57) Special grants received are treated as revenue in nature.

58) Charitable Hospitals/schools must prepare profit and loss account.

59) Receipts and payments account shows profit earned or losses suffered during a year.

60) Incomes and Expenditures account is merely accompanied with a Balance sheet.

61) Any donation received for a specific purpose is a revenue receipt.

62) Excess of expenditure over income is known as deficit.

63) Purchase of fixed asset is treated as revenue expenditure.

64) Subscription is an income of recurring nature.

65) Non profit organisation is managed and run by its members to provide social service.

66) Life membership fees are added to capital fund.

67) Accrued interest is an asset.

68) Capital fund is a liability.

69) All payments are recorded on debit side of Income and Expenditure account.

70) Entrance/Membership fees to a Lion's club are shown as payments.

71) Purchase of sports materials/equipments is revenue expenditure.

72) Subscription received in advance is an income.

73) Outstanding expenses of previous year are to be deducted from Expenses.

74) Accrued subscriptions for the current year are subtracted from subscription.

75) Charitable institution prepares Profit and Loss A/c.

76) Receipts and Payment A/c represents the cash position of the organisation.

77) Income and Expenditure A/c must be accompnied by a balance sheet.

78) Receipts and Payment A/c shows the amoount of profit earned or loss suffered.

79) Receipts and Payment A/c contains only transactions relating to current year.

80) Service organisation undertakes activities to earn profit.

81) Receipts and Payments A/c is a Nominal A/c.

82) Income and Expenditure A/c is a Real A/c.

83) Every year 'Bal Vikas Mandir' a school prepares Profit and Loss A/c.

84) Every 'Not For Profit' concern prepares an Income and Expenditure A/c.

85) Income and Expenditure A/c contains all incomes received during a year, irrespective of the period to which it relates and irrespective of their nature.

86) Receipts and Payment A/c contains only those cash transactions, which are related to current year.

87) Charitable institution prepare Income and Expenditure A/c.

88) There is no difference between Income and Expenditure A/c and Receipts and Payment A/c

89) 'Not for Profit' concerns do not prepare Balance Sheet.

90) Income and Expenditure A/c shows the surplus or deficit to the concern for a given year.

91) The exepnditure incurred on installation of machinery is revenue expenditure.

92) The Receipts and Payment A/c records only cash transactions.

93) The main object of Not for Profit is to earn profit.

94) Scholarship granted to students out of specific funds provided by Government will be debited to

95) In case of NPO, excess of total assets over liabilities is known as

96) General donations and annual legacies are credited to

97) Interest on prize funds is

98) Special aids are