Question :

Assertion (A): NPO do not maintain any capital account. Instead they maintain capital fund which is also called general fund that goes on accumulating received from year to year.
Reason (R): The capitalised items like legacies, entrance fees and life membership fees directly added to the capital fund.

Option 1:

Both Assertion (A) and Reason (R) are true and (R) is correct explanation of Reason (A)

Option 2:

Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Reason (R) is true but Assertion (A) is false

Question :

General donations are treated as:

Option 1:

Revenue receipt

Option 2:

Capital receipt

Option 3: Revenue expenditure

Option 4: Capital expenditure

Question :

Receipts and Payments Account does not include which of the following?

Option 1:

Non-cash items such as depreciation

Option 2:

Outstanding expenses

Option 3:

Accrued income

Option 4: All of these

Question :

Which of the following is not a feature of a not-for profit organisation?

Option 1:

Service motive

Option 2:

Separate entity

Option 3:

Unlimited liability

Option 4:

Managed by elected members

Question :

Any amount received as per the will of a deceased person specifying its use is a:

Option 1:

Capital receipt

Option 2:

Revenue receipt

Option 3: Both 1 and 2

Option 4: None of these