Not-for-Profit Accounting Quiz
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Questions and Answers

What is the main objective of not-for-profit organisations?

  • Competing with business organizations
  • Providing service to members and the public (correct)
  • Minimizing expenses to increase surplus
  • Maximizing profit for the organization

    • Which financial statements are prepared by not-for-profit organisations?

  • Profit and Loss Account and Trial Balance
  • Cash Flow Statement and Statement of Retained Earnings
  • Income Statement and Balance Sheet
  • Receipt and Payment Account and Income and Expenditure Account (correct)

    • What is the purpose of the Receipt and Payment Account?

  • To calculate the net income or loss for the organization
  • To summarize cash receipts and payments during a period (correct)
  • To provide a detailed breakdown of fixed assets
  • To record all revenue and expenses over a period of time

    • What distinguishes the Income and Expenditure Account from the Receipt and Payment Account?

    <p>The former includes only revenue items, while the latter includes both revenue and capital items</p> Signup and view all the answers

    What type of items are included in the Income and Expenditure Account?

    <p>Both revenue and capital items</p> Signup and view all the answers

    Which financial statements are typically prepared by not-for-profit organisations?

    <p>Income and Expenditure Account and Balance Sheet</p> Signup and view all the answers

    What is the primary focus of not-for-profit organisations?

    <p>Service to members and the public</p> Signup and view all the answers

    What is the purpose of the Receipt and Payment Account?

    <p>Summarize cash transactions during a period</p> Signup and view all the answers

    Which items are included in the Income and Expenditure Account?

    <p>Revenue and expenses for a specific period</p> Signup and view all the answers

    What distinguishes the Income and Expenditure Account from the Receipt and Payment Account?

    <p>Accrual basis of accounting versus cash basis</p> Signup and view all the answers

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