Non-Profit Organizations Overview

<p>To track the flow of cash in and out of the business for a specific period (C)</p> Signup and view all the answers

<p>It calculates the net income or loss for the period from non-trading activities (C)</p> Signup and view all the answers

<p>Depreciation (C)</p> Signup and view all the answers

<p>They are deducted from the gross profit to calculate the shop profit. (D)</p> Signup and view all the answers

<p>To determine the total value of the inventory purchased on credit during the period. (D)</p> Signup and view all the answers

<p>Total revenue exceeds total expenses. (B)</p> Signup and view all the answers

<p>Current liabilities (C)</p> Signup and view all the answers

<p>The balance carried forward from the prior accounting period. (A)</p> Signup and view all the answers

<p>Machinery (B)</p> Signup and view all the answers

<p>Accumulated fund (D)</p> Signup and view all the answers

<p>To provide facilities for its members (C)</p> Signup and view all the answers

<p>Surplus (B)</p> Signup and view all the answers

<p>Receipts and Payments Account (A)</p> Signup and view all the answers

<p>Deficit (B)</p> Signup and view all the answers

<p>Subscriptions in arrears (B)</p> Signup and view all the answers

<p>Accumulated fund (A)</p> Signup and view all the answers

<p>Income and Expenditure Account (C)</p> Signup and view all the answers

<p>A profit for the year (B)</p> Signup and view all the answers

<p>They can be treated as income with justification. (A)</p> Signup and view all the answers

<p>Receipt and Payment Account (C)</p> Signup and view all the answers

<p>Adjust for advance and outstanding subscriptions. (B)</p> Signup and view all the answers

<p>Future subscriptions that have been received. (A)</p> Signup and view all the answers

<p>Unpaid dues from members. (A)</p> Signup and view all the answers

<p>Total received plus opening advance, minus closing advance. (C)</p> Signup and view all the answers

<p>Subscriptions that have been collected in advance for future periods. (C)</p> Signup and view all the answers

<p>Both advance and outstanding subscriptions need regular adjustments. (C)</p> Signup and view all the answers

<p>$80,200 (A)</p> Signup and view all the answers

<p>$81,000 (D)</p> Signup and view all the answers

<p>Deducted from the asset value (B)</p> Signup and view all the answers

<p>It is considered expenditure in the account (D)</p> Signup and view all the answers

<p>$3,695 (D)</p> Signup and view all the answers

<p>Subscriptions paid in advance for the previous year (C)</p> Signup and view all the answers

<p>Treated as profit or income (D)</p> Signup and view all the answers

<p>It increases the income by the arrears amount (B)</p> Signup and view all the answers

<p>Revenue Receipts (B), Capital Receipts (D)</p> Signup and view all the answers

<p>As capital and in a separate bank account (C)</p> Signup and view all the answers

<p>An amount received as per the will of a donor (A)</p> Signup and view all the answers

<p>A capital receipt and a proportion treated as income over years (B)</p> Signup and view all the answers

<p>Capital receipts as they are non-recurring (D)</p> Signup and view all the answers

<p>They help fulfill the organization's missions (B)</p> Signup and view all the answers

<p>Entirely as capital (C)</p> Signup and view all the answers

<p>Specific donations are intended for particular purposes (D)</p> Signup and view all the answers

An organization that does not earn profits for owners and serves public purposes.

Excess of income over expenditure in a non-profit organization.

Excess of expenditure over income in a non-profit organization.

Account to determine surplus or deficit for a non-profit organization.

Equivalent to capital in a non-profit organization, representing total funds.

Records money received and spent by the non-profit organization.

Payments made by members to join and participate in the club or society.

The equivalent of a trading account for non-profits, reflecting activities conducted.

Money given freely to support a non-profit's mission.

Fund provided for a specific purpose, treated as capital.

Fund given without a specific purpose, treated as revenue.

Amount received from a donor's will, treated as a capital receipt.

One-time payment for lifetime club membership, credited gradually.

One-time fee paid by members; considered a non-recurring capital receipt.

Funds received for long-term benefits, not treated as income.

Funds received for regular activities, treated as income.

Corrections made to subscriptions for accurate yearly reporting.

Membership fees owed by members at the end of the period.

Subscription fees paid in advance for future periods.

The process of determining total subscriptions for the year based on various factors.

The initial amount of money available at the beginning of a financial period.

The sum of all non-current and current assets owned by the organization.

Obligations the organization must pay within one year.

Obligations that are due beyond one year.

The process of determining if income exceeds expenditures over a period.

The amount remaining after deducting shop related expenses from gross profit.

Sales revenue minus the cost of sales, showing profit before expenses.

Total costs directly assigned to the production of goods sold by the shop.

The balance brought down from the previous period in financial accounts.

Formula: Credit purchase = payment to suppliers - opening payables + closing payables.

Determines the net income from all activities including subscriptions and fees.

The systematic reduction of an asset's value over time on financial statements.

Total membership subscriptions calculated for a specific period.

Amount received for subscriptions before the year starts, not yet earned.

Amount owed by members for subscriptions at year-end.

Amount owed by members from the previous year.

Amount received in advance for the next year by year-end.

Non-recurring event where an asset is sold, impacting financials.

Payment for guest speakers or performers, classified as expenditure.

Transactions that do not happen regularly, like asset sales.