Tag: accounting record of non-trading organisations
Questions Related to accounting record of non-trading organisations
Which of the following is generally considered as a non-profit oriented organization ?
-
Charitable organization
-
Corporation
-
Audit firms
-
Insurance companies
A Charitable organisation is an organization whose main objective is social well being. Charitable organisations often depend on donations. Corporation, Audit firms and Insurance companies work for profit motive. They can not be considered as Non- profit organizations.
The affairs of the not-for-profit organisations are usually managed by a managing/executive committee elected by its _______.
-
members
-
owners
-
shareholders
-
directors
b'
Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members. These organisations have service as the main objective. Normally these organisations do not undertake any business activity and are managed by trustees/executive committee. these committee is elected by its members.
'In the Not-For-Profit Micro Finance Institutes.
Which among the following are included?
-
Societies
-
Public Trusts
-
Non-Profit Companies
-
All of these
Funds raised by such Not-for-Profit organisations are credited to ________.
-
Capital fund
-
Security reserve
-
Security premium
-
General fund
Funds raised by such Non-for-Profit organisations are credited to capital fund or general fund. The excess of assets over liabilities is treated as capital fund or general fund.
Which statement are prepared by the Not-for-profit Organisations?
-
Receipt and Payment Account
-
Income and Expenditure Account
-
Balance Sheet
-
All of the above
Following are items of capital fund account:
-
Legacies
-
Life membership fee
-
Donation
-
All of the above
In Non-profit organizations, the capital funds are accumulated along with capital receipts and receipts that are capitalized by further increasing the surplus or decrease by the deficit during the year. Legacies, Life membership fee and donation are capital receipt because these are of non-recurring nature. Capital receipts accumulate and form capital fund account of Non-profit organisation.
Not-for-Profit organisations affairs are usually managed by ________.
-
manager committee
-
employees committee
-
executive committee
-
investors committee
b'Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members.
Not for profit organisation do not have to manufacture,purchase or sell goods and may not have credit transactions so they don't have to maintain _________account.
-
trading Account
-
balance sheet
-
profit and Loss Account
-
all of the above
Non for profit organisations do not manufacture, purchase or sell goods and may not have credit transactions so they do not have to maintain trading account and profit and loss account.
A sports club is a trading concern.
-
True
-
False
Trading concern is an entity that derives its products for sale, thereby revenue, through purchasing products for sale from other producers /manufacturers for resale to their customers base. A sports club is not a trading concern as it does not perform any such tasks.
A not-for-profit entity has all of the following characteristic except that it will ______________.
-
operate for purposes other than to provide goods or service at a profit
-
not have a positive fund balance
-
not possess ownership interests like a corporation
-
receive significant contributions from providers who do not expect returns.
As the name suggest not-for-profit entity works to provide social services and doesn't relate any of its activity with profit.