Students who are searching for NCERT MCQ Questions for Accounting for Not for Profit Organisation with Answers free are compiled here to get good practice on all fundamentals. The MCQ Questions for Class 12 Accountancy with answers have been prepared as per the latest 2021 syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE.

Refer to more Chapter-wise MCQ Questions for NCERT Class 12 Accountancy and also download more latest study material for all subjects. The following Multiple choice Questions with Answers can help you to practice and get better marks in the upcoming class 12. You can also verify your answers from our provided and know your level of preparation.

1. Receipts and Payments Account generally shows :

(A) A Debit balance
(B) A Credit balance
(C) Surplus or Deficit
(D) Capital Fund

2. Income and Expenditure Account records transactions of:

(A) Revenue nature only
(B) Capital nature only
(C) Both revenue and capital nature
(D) Income of only revenue nature and expenditure of revenue and capital nature.

3. Income and Expenditure Account reveals :

(A) Surplus or Deficiency
(B) Cash in Hand
(C) Net Profit
(D) Capital Account

4. The amount of ‘Subscription received from members’ by a Non-profit organi sation is shown in which of the following?

(A) Debit side of Income and Expenditure Account
(B) Credit side of Income and Expenditure Account
(C) Liability side of Balance Sheet
(D) Assets side of Balance Sheet

5. Donation received for a special purpose :

(A) Should be credited to Income and Expenditure Account
(B) Should be credited to separate account and shown in the Balance Sheet
(C) Should be shown on the assets side
(D) Should not be recorded at all.

6. Subscription received by a school for organising annual function is treated as:

(A) Capital Receipt (i.e., Liability)
(B) Revenue Receipt {i.e., Income)
(C) Asset
(D) Earned Income

7. The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?

(A) Liability side of Balance Sheet
(B) Assets side of Balance Sheet
(C) Debit side of Income and Expenditure Account
(D) Credit side of Income and Expenditure Account

8. Which of the following is an example of not-profit-organisation:

(a) Public hospitals
(b) Corporations
(c) Audit firm
(d) Insurance companies.

9. The Receipt and Payment account of a Non- Profit Organisation is a

(a) Nominal Account
(b) Real Account
(c) Income Statement Account
(d) Financial Statements

10. If Income is Rs.16,000 and deficit debited to Capital Fund is Rs.4,300 then Expenditure is:

(a) 16,000
(b) 4,300
(c) 20,300
(d) None of these

11. In regard to Rent expenses paid in advance of a non- profit organisation which of the following classification is correct

(a) Expense
(b) Liability
(c) Equity
(d) Assets

12. Which of the following statements is not true for Receipts and Payments Account?

(a) It is a summary of the Cash Book.
(b) It records receipts and payments of revenue nature only.
(c) The receipts and payments may relate to current, preceding, or succeeding accounting periods.
(d) Depreciation is not shown in it.

13. Sources of Funds for Not-For-Profit Organisations?

(a) Donation

(b) Membership fees or Entrance fees

(c) Subscription

(d) Grants

(e) All of these

14. Features of Not-For-Profit Organisations….

(a) Set up by charitable society

(b) Main aim is provise service

(c) Separate entity from its members

(d) Managed by elected member

(e) All of these

15. Financial Statement of NPO organisation includes:

(a) Receipts and Payments A/C

(b) Income and Expenditure A/C

(c) Balance Sheet

(d) All of these

16. Recepits and Payments A/c is a…

(a) Real Account

(b) Nominal Account

(c) Persocal Account

(d) None of these

17. Income and Expenditure accounts is a…

(a) Real Account

(b) Nomincal Account

(c) Personal Account

(d) None of these

18. Not for profit organisation prepared…

(a) Trading A/c

(b) Profit and loss A/c

(c) Receipts and Payments A/c and Income and Expenditure A/c

(d) All of these.

19. Receipt and Payments acccount prepared on …

(a) Accrual Basis of accounting

(b) Cash basis of accounting

(c) Both (a) and (b)

(d) None of these.

20. Income and expenditure account prepared on…

(a) Accrual Basis of accounting

(b) Cash basis of accounting

(c) Both (a) and (b)

(d) None of these.

21. Capital receipts….

(a) Life membership fees

(b) Building fund

(c) Receipts from sale of fixed assets

(d) Endowment Fund

(e) All of these

22. Balance of income and expenditure account represents….

(a) Net profit

(b) Net loss

(c) Surplus or deficit

(d) All of these

23. Subscription received in advene during the current year is…..

(a) an income

(b) an assets

(c) a Liability

(d) None of these

24. Receipts and payment accounts is prepared on the basis of….

(a) Trading account

(b) Cash Book

(c) Income and expenditure account

(d) None of these

25. Features of income and expenditure accounts are….

(a) It is a nomincal account

(b) It records income, expenditure and losses of revenue nature on a accrual basis of accounting.

(c) It does not have a opening balance.

(d) All of these

Answer:

1. Answer (A) A Debit balance

2. Answer (A) Revenue nature only

3. Answer (A) Surplus or Deficiency

4. Answer (B) Credit side of Income and Expenditure Account

5. Answer (B) Should be credited to separate account and shown in the Balance Sheet

6. Answer (A) Capital Receipt (i.e., Liability)

7. Answer (D) Credit side of Income and Expenditure Account

8. Answer (a) Public hospitals

9. Answer (b) Real Account

10. Answer (c) 20,300

11. Answer (d) Assets

12. Answer (b) It records receipts and payments of revenue nature only.

13. Answer (d) All of these

14. Answer (d) All of these

15. Answer (d) All of these

16. Answer  (a) Real Account

17. Answer (b) Nomincal Account

18. Answer (c) Receipts and Payments A/c and Income and Expenditure A/c

19. Answer (b) Cash basis of accounting

20. Answer (a) Accrual Basis of accounting

21. Answer (e) All of these

22. Answer (c) Surplus or deficit

23. Answer (c) a Liability

24. Answer (b) Cash Book

25. Answer (d) All of these