MCQ Questions for Class 11 Accountancy Chapter 16 Accounting for Not-for-Profit Organisation with Answers

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Accounting for Not-for-Profit Organisation Class 11 MCQs Questions with Answers

Choose the correct one

Question 1.
Not-For-Profit Organisations prepares
(a) Income and Expenditure Account
(b) Profit and Loss Account
(c) Trading Account
(d) None of the above

Answer

Answer: (a) Income and Expenditure Account


Question 2.
The Receipts and Payments Account is the summary of
(a) Income and expenditures during current year
(b) Cash receipts and payments
(c) Debit and credit balances of ledger accounts
(d) Only cash receipts

Answer

Answer: (b) Cash receipts and payments


Question 3.
Subscription received in advance by a club during previous year are shown
(a) on the credit side of Income and Expenditure Account
(b) on the assets side of the Opening Balance Sheet
(c) on the assets side of the Closing Balance Sheet
(d) on the liabilities side of the Closing Balance Sheet

Answer

Answer: (b) on the assets side of the Opening Balance Sheet


Question 4.
Donations received for a specific purpose is a
(a) Assets
(b) Liabilities
(c) Revenue Receipts
(d) Capital Receipts

Answer

Answer: (d) Capital Receipts


Question 5.
Opening Cash Balance is shown in
(a) Income and Expenditure Account
(b) Receipts and Payments Account
(c) Closing Balance Sheet
(d) None of the above

Answer

Answer: (b) Receipts and Payments Account


Question 6.
The Receipts and Payments Account is a
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the above

Answer

Answer: (a) Real Account


Question 7.
Subscription outstanding are
(a) an income
(b) an asset
(c) a liability
(d) An expenditure

Answer

Answer: (b) an asset


Fill in the blanks

Question 1.
Entrance Fees is treated as …………….. receipt.

Answer

Answer: Revenue


Question 2.
Subscriptions received in advance by a club are shown on the ……………. side of the Balance Sheet.

Answer

Answer: Liabilities


Question 3.
Payment of honorarium is treated as ………………. expenditure.

Answer

Answer: Revenue


Question 4.
Excess of income over expenditure is shown on the ……………… side of Income and Expenditure Account.

Answer

Answer: Debit side


Question 5.
In a Receipts and Payments Account the payments are recorded on the …………….. side.

Answer

Answer: Credit


Question 6.
Income and Expenditure Account is prepared by ………………. concerns.

Answer

Answer: Not-For-Profit


Question 7.
A debit balance in the Income and Expenditure Account denotes excess of …………… over …………….

Answer

Answer: Expenditure, Income


Question 8.
Subscription received by an institution is a …………….. receipt.

Answer

Answer: Revenue


Question 9.
Interest received on special fund investments will be added to ……………… fund in the Balance Sheet.

Answer

Answer: Special


Question 10.
Life membership fees received by a club are show in ………………..

Answer

Answer: Balance Sheet


Question 11.
Life membership fee received by an institution is a, …………….. receipt.

Answer

Answer: Capital


Question 12.
Subscriptions received in advance will figure in the ………………

Answer

Answer: Balance Sheet


Question 13.
Any amount received towards Endowment funds in a ……………… receipt.

Answer

Answer: Capital


Question 14.
Income and Expenditure Account is a ……………… account.

Answer

Answer: Nominal


Question 15.
Excess of expenditure over income is ……………… capital fund in the Balance Sheet.

Answer

Answer: Deducted from the


Question 16.
The closing debit balance in the Receipts and Payments Account indicates the ……………. balance at the end of the year.

Answer

Answer: Cash


Question 17.
Opening and closing balances of cash are …………….. in Receipts and Payments Account.

Answer

Answer: Entered


Question 18.
The Income and Expenditure Account is prepared on the basis of ……………. system, of accounting.

Answer

Answer: Mercantile


Question 19.
Income and expenditure matches all ……………… receipts against ……………….. payment pertaining to the relevant accounting year.

Answer

Answer: Revenue, Revenue


Question 20.
Receipts and Payments Account is a ……………………. account.

Answer

Answer: Real


State whether the following statements are true or false

Question 1.
Loss on the sale of furniture of a sports dub will be shown in the Receipts and Payments Account.

Answer

Answer: False


Question 2.
Receipts and Payments Account is nothing but a consolidated summary of the cash book.

Answer

Answer: True


Question 3.
Any subscriptions received in advance are treated as capital receipts and are therefore taken to the liabilities side of the balance sheet.

Answer

Answer: False


Question 4.
Receipts and Payments Account is a summary of all capital receipts and payments.

Answer

Answer: False


Question 5.
The Income and Expenditure Account is equivalent to Profit and Loss Account of a business enterprise.

Answer

Answer: True


Question 6.
The closing balance of Receipts and Payments Account reveals the surplus or deficit of a non-trading concern.

Answer

Answer: False


Question 7.
Life membership fee is totally credited to the Income and Expenditure Account.

Answer

Answer: False


Question 8.
The Receipts and Payments Account records receipts and payments of revenue nature only.

Answer

Answer: False


Question 9.
100% provision is made for outstanding fee in case of professional conems.

Answer

Answer: True


Question 10.
Entrance fees unless otherwise stated is to be taken as a capital receipt.

Answer

Answer: False


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