Accounts of Not-For-Profit-Making Organizations
Accounts · 50 practice questions
Objectives of such organizations; the receipts and payments account; the income and expenditure account; the statement of financial position.
- Distinguish between profit-oriented and not-for-profit-making organizations.
- Determine annual subscription, subscription in arrears and in advance.
- Compute cash balances, accumulated funds, and surplus or deficit for the period.
Try a few questions
- Practice question 1
The statement of financial position of a not-for-profit organization specifically would show any outstanding subscriptions as
- A.a current asset
- B.a reduction in the organization's own accumulated fund directly
- C.a factor entirely unrelated to a current asset of any kind
- D.a current liability, rather than a current asset
Show the answer
A. a current asset
The statement of financial position specifically would show any outstanding subscriptions as a current asset.
- Practice question 2
A club's cash subscriptions received during the year total ₦50,000, and subscriptions of ₦4,000 remain in arrears at year end. Subscription income is
- A.₦50,000
- B.₦54,000
- C.₦46,000
- D.₦4,000
Show the answer
B. ₦54,000
Subscription income = cash received + arrears at year end = 50,000 + 4,000 = ₦54,000.
- Practice question 3
Not-for-profit organizations specifically still require sound financial management, despite
- A.not existing to generate profit for owners
- B.existing solely and exclusively to generate profit for their own owners
- C.having no financial transactions of any kind to manage whatsoever
- D.a factor entirely unrelated to the organization's own profit motive
Show the answer
A. not existing to generate profit for owners
Not-for-profit organizations specifically still require sound financial management, despite not existing to generate profit for owners.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Departmental Accounts
- Branch Accounts
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