Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Receipts and Payments Account is prepared by _________________.

  1. Manufacturing concerns

  2. Non-Trading concerns

  3. Trading concerns

  4. Companies registered under Companies Act. $1956$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Receipts and payments Account is prepared by Non-Trading concerns. It acts like a cash account for the Non-Trading Concerns and helps in the making of income and expenditure of account which will show the deficit and surplus of the concern.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Final accounts prepared for professionals is termed as __________ Account and not Income and Expenditure Account.

  1. Profit and loss

  2. Receipt and expenditure

  3. Profit and loss appropriation

  4. Capital Revenue
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Receipt and Expenditure is simply a summary of the cash transactions as in the cash book, analyzed and classified under suitable heading, including the opening and closing balances.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The Receipt and Payment Account ending with the closing balance of _______ and _______.

  1. Bank, bond

  2. Cash, bank

  3. Cash, receivable

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Receipt and Payment account starts with opening balance of cash and bank and end with the closing balance of cash and bank. 

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The receipt and payment account generally shows _________________.

  1. A surplus

  2. A credit balance

  3. A debit balance

  4. A deficit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A receipt and payment account generally shows a debit balance. To ascertain any missing item of receipt or payment, generally cash book summary is prepared.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The receipt and payment account records both ______ and  _____ nature items.

  1. Capital, Revenue

  2. Revenue, Deferred

  3. Deferred, Capital

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Receipt and Payment account is a summary of cash/bank transactions of NPO for specialized accounting period. This Statement records both capital and revenue nature items.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

In receipt and Payment account cash transactions are recorded where as in Income and expenditure account:

  1. Cash transactions are recorded.

  2. Non-cash transactions are recorded.

  3. Both (a) and (b) are correct.

  4. None of the above is correct.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Receipt and Payment account is a summarized statement of all cash transactions during an accounting year. Income and Expenditure account is the account through which surplus or deficit of a non-profit-seeking concern is ascertained.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The Income and Expenditure account records:

  1. Income on the left hand side and expenditure on the right hand side of A/c.

  2. Income on the right hand side and expenditure on the left hand side of A/c.

  3. Income on any side of the account and expenditure on the other side of A/c.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Income and expenditure account records income on the right hand side and expenditure on the left hand side. An Income and expenditure account is just like Profit and Loss account  where expenses and losses are debited and income and gains are credit. 

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Receipt and Payment account is prepared on the ______ day of accounting year.

  1. middle

  2. satarting

  3. last

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Receipt and Payment account is prepared on the last day of accounting year. This account records transaction related to cash in the accounting year.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Receipts are recorded on the _______ side while payments are entered on the ______ side.

  1. credit, debit

  2. debit, credit

  3. debit, debit

  4. credit, credit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Receipt and Payment account is a summary of cash book where receipts are recorded on debit side and payments are recorded on credit side.

Multiple choice book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Debit balance of receipts and Payments account indicate:

  1. The loss incurred during the period.

  2. The excess of incomes over expenditure of the period.

  3. The total cash payments during the period.

  4. Cash in hand or bank balance on the date of the balance.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A receipts and payment account is just like a cash account hence it begins with opening balance and ends with closing balance of cash. Hence the debit balance of receipts and payments account just like cash account reflects closing balance of cash at the end of the year after taking into account all the payments and receipts.