Practice Accounting For Non-trading Organisations (10.3)

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8 questions

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6 sample questions

Question 1.
What are two sources of income for non-trading organisations?
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Think about contributions from the community.
Question 2.
What does the Receipts and Payments Account record?
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Remember, it's about cash flow!
3Question 3.
What does a Receipts and Payments Account summarize?
- Only cash receipts
- Only cash payments
- Both cash receipts and payments
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Remember it covers what comes in and goes out!
4Question 4.
True or False: Income and Expenditure Accounts only include actual cash payments.
- True
- False
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Think about what is recorded beyond cash.
Question 5.
You are the finance officer of a local charity. Last quarter, the charity received ₹100,000 from donations, ₹30,000 from fundraising, and ₹20,000 from membership fees. What would you record in your Receipts and Payments Account?
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Make sure to include all sources of funds.
Question 6.
Evaluate how lack of funds from donations could affect the operational integrity of a non-trading organisation.
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Consider the impact on major expenses.

4 more questions in this section. Enroll free to practise them all.