Financial Statements of Not-for-Profit Organisations MCQ

1. The Receipts and payment account for a non-profit organization follows the accrual concept of accounting.

2. Both the revenue and capital nature transactions are recorded in the Income and expenditure account.

3. Sale of grass by a sports club is to be treated as sale of an asset.

4. Subscriptions outstanding for the current year are disclosed under the Fixed assets side of the Balance sheet.

5. Receipts and payments account gives the details about the expenses outstanding for the year.

6. Adjustments in the form of additional information shall be adjusted in the final accounts of a Non-profit organisation only in one place.

7. Tournament expenses incurred are more than the Tournament fund, then the excess to be shown as an asset in the closing Balance sheet.

8. For Non-profit organisation, Excess of income over expenditure in the Income and Expenditure account is termed as profit.