Financial Accounting

NON TRADING CONCERNS MCQs with ANSWERS





NON TRADING CONCERNS MCQs with ANSWERS

1. The institutions, which deal in activities other than trade are called:

(A) Trading concerns

(B) Non-trading concerns

(C) Manufacturing concerns

(D) None of them

Answer

Option B
  

2. The record of cash kept by the non-trading concerns is shown by:

A) Receipt & payment account

(B) Income & loss account

C) Profit & loss account

(D) Manufacturing account

Answer

Option A
  

3. An account, prepared to compute the surplus or deficit of a club or society is termed:

A) Revaluation account

(B) Realization account

C) Income & expenditure account

(D) Revenue account

Answer

Option C
  

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4. When the assets of a charitable institution exceed its liabilities, the excess balance is shown as:

A) Accumulated surplus

(B) Deficit

C) Revenue income

(D) Net profit

Answer

Option A
  

5. All receipts and payments of capital nature of non-trading concern are shown in the:

A) Receipt & payment account

(B) Income & expenditure account

C) Balance sheet

(D) None of the above

Answer

Option B
  

6. The balance sheet of a hospital does not contain the item of:

A) Cash

(B) Owner’s equity

C) Building

(D) Stock

Answer

Option B
  

7. A fee paid by the members of the club at the time of becoming a member is called:

A) Grant

(B) Subscription

C) Entrance fee

(D) Donation

Answer

Option C
  

8. The main objective of non-trading concern is to:

(A) Earn profit

(B) To create monopoly

(C) Both “a” & “b”

(D) Welfare of society

Answer

Option D
  

9. Special subscription should be treated as:

(A) Expense

(B) Capital

(C) Liability

(D) None of them

Answer

Option C
  

10. Which of the following is treated as income in non-trading concern:   

(A)  Entrance fee

(B)  Sale of asset

(C)  Endowment fund

(D)  Telephone charges

Answer

Option A
  

11. Gift presented to chief guest at annual function by non-trading concern is:     

(A) Gift

(B)  Reward

(C)  Honorarium

(D)  All of these

Answer

Option C
  

12. The balance sheet of a hospital does not contain the item of:   

(A)  Cash

(B)  Owner’s equity

(C)  Building

(D)  Stock

Answer

Option B
  

13. Capital fund is shown on:    

(A) Asset side

(B)  Liability side

(C)  Both “a” & “b”

(D)  None of these

Answer

Option B
  

14. Endowment fund is:    

(A) Liability

(B)  Asset

(C)  Income

(D)  Expenditure

Answer

Option A
  

15. Sale of old newspaper should be treated as:

(A) Liability

(B)  Asset

(C)  Income

(D)  Expenditure

Answer

Option C
  




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