Financial accounting and reporting - class-XII
|Description: Financial accounting and reporting|
|Number of Questions: 15|
|Created by: Mohini Tyagi|
|Tags: accountancy elements of accounts commercial applications book keeping and accountancy accounts of non-trading concerns financial accounting and reporting financial statements of not-for-profit organisations accounts of not-for-profit organisation accounting for not-for-profit organizations accounting for non trading organisations and professional persons accounting for not-for-profit organisation accounts of non-trading organisations|
'Subscriptions received in advance" pertaining to last year will be on _________ of the Subscription A/c prepared for the current year.
Subscription is the amount that is paid by members of NPO every year. It is the primary source of income of NPO. It is generally paid every month. It is the amount paid by members to keep their membership alive. An advance receipt of subscription from a member is an income received in advance. It is liability for NPO. So it is recorded on credit side of Subscription Account.
In case of a non profit organization rent of building is due but not yet received by it is considered as a/an ______________.
When any kind of income is due and has to be received by company in future it is known as accrued income and this type of income is an asset for firm.
The amount or property received by a non-profit organization as stated by the will of a deceased person is commonly referred to as ______________.
Legacy is the amount received by a non-profit organisation when a person has mentioned about transferring his property value to such organisation on his or her death. Hence, on death of that person, his property will be taken by the non-profit organisation.
Which of the following is correct treatment of legacy received by non-profit organization ?
Surplus revealed by income and expenditure account ___________________.
The balance sheet of a non-profit organization such as a charitable hospital doesn't contain the _____________.
When the balance sheet is prepared for any company set up to earn profit, the owner's equity is mentioned because it is funded by the owner to start the business.
It is the amount which a non-trading concern receives as per the will of a deceased person___________.
Legacy is an amount of property or money left to someone in a will. It refers to property received by virtue of a will of a deceased person. Acquisition of such property by an institution is a capital receipt because these are not received on a regular basis. Hence, it will not appear in income and expenditure account. It is shown in liabilities side of balance sheet.
Following details are available for Saturn social club. Opening balance of capital fund Rs. 4,67,600 Donation capitalized during the year Rs. 12,500 Surplus in Income & Expenditure A/c Rs. 18,750. Closing balance at capital fund must be ___________.
Closing balance for the capital fund can be calculated using the formula given below:
Absorption of production overhead costs on a marginal cost basis is unacceptable:
Absorption costing is a technique whereby each unit of output is charged with both fixed and variable production costs. The fixed production costs are treated as part of the actual production cost.
Surplus revealed by Income and expenditure account ___________.
b'Income and expenditure account can be defined as an account that reveals surplus or deficit of a non-trading concern by matching incomes and expenses of a specified accounting period. The balance of income and expenditure account is transferred to the balance sheet. Surplus balance is added to the capital fund in balance sheet. '
Income and Expenditure Account is prepared on ____________.
Income and expenditure account is prepared on Accrual basis. Accrual basis of accounting is wherein all the expenses that are actually incurred and incomes actually earned are recorded. Its recorded when its realised and not when received.
Professional people like solicitors, doctors, company secretary, cost accountant, chartered accountants etc., prepare for themselves ___________ which is a modified form of Income & Expenditure A/c prepared by non-trading concerns.
Income and Expenditure account prepared by non-trading concerns is very much like the profit and loss account prepared by trading concerns. Both accounts show the expenditure incurred and income earned during the year. In the end balance is calculated. In Income and Expenditure account balance is termed surplus or deficit and in Profit and loss account it is termed "Net Profit" or "Net Loss".
Income and Expenditure Account is equivalent to ____________.
Income and Expenditure account prepared by non trading concerns is very much like the profit and loss account prepared by trading concerns. Both account shows the expenditure incurred and income earned during the year. In the end balance is calculated. In Income and Expenditure account balance is termed surplus or deficit and in Profit and loss account it is termed "Net Profit" or "Net Loss".
Which of the following is the accounting equation for a non-profit organization ?
Accounting equation is a statement representing a relationship between a company's assets, liabilities and its capital.
The capital of a non-profit organization is generally known as __________.
The capital for a non-profit organisation is not funded by the owner and thus has to be mentioned as capital fund. This is because capital fund is that account which records all those transactions which are related to capital nature.