CHAPTER 1 :- NOT FOR PROFIT ORGANISATION

TRUE- FALSE QUESTIONS

Sl.No. Question

1 Specific donations are shown in the asset side of Balance Sheet(T/F)

2 Life membership fees and Endowment Fund are examples of capital Receipts(T/F)

3 A NPO distributes its surplus or deficit to its members.(T/F)

4 Surplus increases the credit balance of capital(T/F)

5 Not for profit concerns concentrate their efforts on maximising the profits.(T/F)

6 Charitable institutions prepare income and expenditure account at the end of every
financial year.(T/F)
7 There is no difference between the nature of Receipt & Payment Account and Cash
book.(T/F)
8 All receipts are the items of revenue nature(T/F)
9 In the income and Expenditure Account, all incomes received during the year irrespective
of the year for which they are received, are to be recorded(T/F)
10 Income and expenditure account shows transactions of capital nature for the accounting
year (T/F)

11 Surplus or deficit of non- profit organization is added to or subtracted from accumulated

fund(T/F)

12 An advance receipt of subscription from members of not for profit organization is an

asset.(T/F0

13 Under not for profit organization sales of old newspaper is shown as an income (T/F)
14 Income and expenditure account is a real account. (T/F)
15 Receipts and Payments account is a Real Account
(A) True (B) False

16 Kendriya Vidyalaya is a non-profit organization

(A) True (B) False

17 Excess of Expenditure over income is a Surplus

(A) True (B) False

18 Life membership fee is a revenue receipt.

(A) True (B) False

19 Tournament expenses in excess of Tournament Fund is shown as an income in the I/E a/c
(A) True (B) False

KVS ZIET BHUBANESWAR 12/10/2021 Page 1

 ANSWER KEY
1 FALSE
2 TRUE
3 FALSE
4 FALSE
5 FALSE
6 False
7 True
8 False
9 True
10 False
11 True
12 False
13 True

14 False
15 True
16 True
17 False
18 False
19 True

PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI, KOLKATA,

RANCHI, SILCHAR AND TINSUKIA REGIONS.

KVS ZIET BHUBANESWAR 12/10/2021 Page 2