Practice Important Points (10.4.3) - Non-Trading Organisations

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6 sample questions

Question 1.
What does the Income and Expenditure Account show?
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Think about how a business profits.
Question 2.
What is a surplus?
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Opposite of deficit.
3Question 3.
What does an Income and Expenditure Account exclude?
- Capital receipts
- Operating expenses
- Income
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Think about what revenue impacts performance.
4Question 4.
A non-trading organization shows a surplus when?
- True
- False
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Consider basic definitions of profit.
Question 5.
Prepare an Income and Expenditure Account for a fictional nonprofit organization that received $15,000 in donations but spent $10,000 in that fiscal year. Ensure to demonstrate the surplus and categorize expenses.
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Categorize donations and tally total expenses clearly.
Question 6.
Consider a scenario where a non-trading organization has an accrued income of $1,500 that isn't cash yet. Discuss how this will affect the Income and Expenditure Account.
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Think of how revenues should reflect actual earned income.

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