Practice Test

Q1) Receipts and payment account is a _________ account. Show Answer

Q2) Incomes and Expenditure account includes only ___________ items. Show Answer

Q3) Receipts and payment account includes both revenue and ______ items Show Answer

Q4) Non profit organisation never engages in ________ activities. Show Answer

Q5) Not for profit organisation renders _______ services to public at large. Show Answer

Q6) Generally, the opening balance on Receipts and payments account shows _________ balance/overdraft. Show Answer

Q7) Outstanding and/or prepaid items are not included in _________ account. Show Answer

Q8) Bank overdraft indicates _________ balance. Show Answer

Q9) Not-profit organisation is also called _________ organisation. Show Answer

Q10) Surplus is ______ to and Deficit is ________ from the capital fund in the balance sheet. Show Answer

Q11) Service organisation prepares _______ A/c to find out excess of income over expenditure. Show Answer

Q12) Life membership fees is capital in receipts and therefore added to ________. Show Answer

Q13) Service organisation prepares _______ at the end of the year to find out financial position. Show Answer

Q14) Special fund/donations should be ____________ and therefore added to ___________. Show Answer

Q15) The closing balance of R & P A/c usually represents _________. Show Answer

Q16) In statement of profit and loss, the positive answer indicates ______ and _________ answer shows loss. Show Answer

Q17) R & P A/c falls under the category of ________ A/c. Show Answer

Q18) Receipt & Payment A/c is the summary of __________ transactions recorded. Show Answer

Q19) I & E A/c is the records of ________. Show Answer

Q20) I & E A/c resembles the ________ A/c of a trading concern. Show Answer

Q21) Debit side of R & P A/c shows cash _________. Show Answer

Q22) Credit side of R & P A/c shows cash _________. Show Answer

Q23) Subscription received in advance during the accounting year is ______. Show Answer

Q24) Which of the following items will not appear in the balance sheet of a club? Show Answer

Q25) ________ Accounts starts with the opening cash balance. Show Answer

Q26) For a liabrary, expenditure on purchase of books is a __________ expenditure. Show Answer

Q27) In I & E A/c, Excess of income over expenditure is termed as ________. Show Answer

Q28) In I & E A/c, Excess of expenditure over income is termed as ________. Show Answer

Q29) A sum of money, goods or any asset given to someone voluntarily, without any compensation is called ________. Show Answer

Q30) Expenditure on purchase of building is a ________ expenditure. Show Answer

Q31) Income & Expenditure Account includes items of ______ nature only. Show Answer

Q32) Income & expenditure account resembles the ________ A/c of a trading concern. Show Answer

Q33) A donation received for a specific purpose is a _________. Show Answer

Q34) Receipts & Payment Account makes no distinction between ______ & Revenue. Show Answer

Q35) Closing balance of Receipts & Payments Account represnts ____. Show Answer

Q36) Expenses of last year and next year are _____ while deciding expenses for the year. Show Answer

Q37) Special donations are shown in the balance sheet on ______ side. Show Answer

Q38) Subscription of the next year received during the currrent year are shown on _______ side of Balance sheet. Show Answer

Q39) Outstanding expenses for the current year are _______ to expenses while preparing Income & Expenditure Account. Show Answer

Q40) Any revenue expense for which a separate fund is available will be Show Answer

Q41) Sale of old materials must beshown in credit side Show Answer

Q42) The information for preparation of R & P Account is taken from: Show Answer

Q43) Any Income arising from special fund will be credited to Show Answer

Q44) R & P A/c records receipts and payment of Show Answer

Q45) Income & Expenditure Account is a Show Answer

Q46) A 'Not for profit' organisation never trading activities. Show Answer

Q47) Only the capital expenses are shown in the Receipts and Payments account. Show Answer

Q48) Sale of old materials must beshown in credit side of incomes and expenditure account. Show Answer

Q49) Balance sheet indicates financial status of an organisation. Show Answer

Q50) Receipts and Payments account records receipts and payments of both capital and revenue nature. Show Answer

Q51) Incomes and Expenditures account is a real account but not a nominal account. Show Answer

Q52) Accrued expenses and advance incomes need not to be adjusted in Non Profit institutions. Show Answer

Q53) Legacies are generally capitalized and credited to balance sheet. Show Answer

Q54) Excess of liabilities over assets is called as capital fund. Show Answer

Q55) Entrance fees to a sports club are to be shown as payment. Show Answer

Q56) A public library is a 'Not for profit' concern. Show Answer

Q57) Special grants received are treated as revenue in nature. Show Answer

Q58) Charitable Hospitals/schools must prepare profit and loss account. Show Answer

Q59) Receipts and payments account shows profit earned or losses suffered during a year. Show Answer

Q60) Incomes and Expenditures account is merely accompanied with a Balance sheet. Show Answer

Q61) Any donation received for a specific purpose is a revenue receipt. Show Answer

Q62) Excess of expenditure over income is known as deficit. Show Answer

Q63) Purchase of fixed asset is treated as revenue expenditure. Show Answer

Q64) Subscription is an income of recurring nature. Show Answer

Q65) Non profit organisation is merged and run by its members to provide social service. Show Answer

Q66) Life membership fees are added to capital fund. Show Answer

Q67) Accrued interest is an asset. Show Answer

Q68) Capital fund is a liability. Show Answer

Q69) All payments are recorded on debit side of Income and Expenditure account. Show Answer

Q70) Entrance/Membership fees to a Lion?s club are shown as payments. Show Answer

Q71) Purchase of sports materials/equipments is revenue expenditure. Show Answer

Q72) Subscription received in advance is an income. Show Answer

Q73) Outstanding expenses of previous year are to be deducted from Expenses. Show Answer

Q74) Accrued subscriptions for the current year are subtracted from subscription. Show Answer

Q75) Charitable institution prepares Profit and Loss A/c. Show Answer

Q76) Receipts and Payment A/c represents the cash position of the organisation. Show Answer

Q77) Income and Expenditure A/c must be accompnied by a balance sheet. Show Answer

Q78) Receipts and Payment A/c shows the amoount of profit earned or loss suffered. Show Answer

Q79) Receipts and Payment A/c contains only transactions relating to current year. Show Answer

Q80) Service organisation undertakes activities to earn profit. Show Answer

Q81) Receipts and Payments A/c is a Nominal A/c. Show Answer

Q82) Income and Expenditure A/c is a Real A/c. Show Answer

Q83) Every year 'Bal Vikas Mandir' a school prepares Profit and Loss A/c. Show Answer

Q84) Every 'Not For Profit' concern prepares an Income and Expenditure A/c. Show Answer

Q85) 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. Show Answer

Q86) Receipts and Payment A/c contains only those cash transactions, which are related to current year. Show Answer

Q87) Charitable institution prepare Income and Expenditure A/c. Show Answer

Q88) There is no difference between Income and Expenditure A/c and Receipts and Payment A/c Show Answer

Q89) 'Not for Profit' concerns do not prepare Balance Sheet. Show Answer

Q90) Income and Expenditure A/c shows the surplus or deficit to the concern for a given year. Show Answer

Q91) The exepnditure incurred on installation of machinery is revenue expenditure. Show Answer

Q92) The Receipts and Payment A/c records only cash transactions. Show Answer

Q93) The main object of Not for Profit is to earn profit. Show Answer