Practice Receipts And Payments Account (10.3.2) - Non-Trading Organisations

Practice: Receipts and Payments Account

Lesson 10.3.2Non-Trading Organisations

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8 questions

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6 sample questions

Question 1.
What does the Receipts and Payments Account primarily record?
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Think about what type of transactions involve cash.
Question 2.
Give one example of a receipt in the account.
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What type of income does a non-trading organization typically receive?
3Question 3.
What does the Receipts and Payments Account include?
- Only cash receipts
- Cash receipts and payments
- Only cash payments
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Consider the term 'and' in the question.
4Question 4.
True or False: The Receipts and Payments Account is prepared on an accrual basis.
- True
- False
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Remember how cash basis accounting works.
Question 5.
A local NGO saw a total of $10,000 in cash receipts from donations, $2,000 from fundraising activities, and $1,500 from entrance fees. Calculate total receipts and discuss the importance for the organization.
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List each source and add them up.
Question 6.
Analyze a scenario where an organization has $8,000 in cash payments for salaries, $1,000 for rent, and $500 for utilities. What implications could this have for their accounting practices if not properly tracked?
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Consider how expenses impact the overall cash flow.

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