Series -1 Objective Type Question / MCQs with Answer by CA. (Dr.) G. S. GREWAL posted on Whatsapp Group

CA. (Dr.) G. S. GREWAL

Objective Type Question / MCQs

posted on Whatsapp Group

Question Series 1

Not for Profit Organisations

True / False: -

1. Under NPO, sale of old newspaper is shown as an income.

Fill in the Blanks: -

2. Token payment made to a person, who voluntarily undertakes a service which would normally command a fee is _______.

Multiple Choice Questions: -

3. Income and Expenditure Account is based on

(a) Cash Basis of Accounting.

(b) Accrual Basis of Accounting.

(c) Mixed Basis of Accounting.

(d) Management Accounting.

Answer – Question Series 1

True / False: -

1. [ True ]

Reason: By selling the old newspaper amount is credited to Income and Expenditure Account. Thus, it is Revenue Receipt and treated as an Income.

Fill in the Blanks: -

2. [ Honorarium ]

3. Multiple Choice Questions: -

 [b]

Reason: Income and Expenditure Account is based on Accrual Accounting, i.e., it records items of revenue nature whether received or not relating to current accounting year.