Q. In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:
✅ Correct Answer: (B)
Debit side the Income and Expenditure Account
Financial Accounting MCQs and Notes
Q. Out of the following items, which one is shown in the Receipts and Payments Account? Sol:
✅ Correct Answer: (C)
Life Membership Fees
Q. Receipts and Payments A/c is a summary of: Sol:
✅ Correct Answer: (C)
All Revenue and Capital Receipts and Payments
Q. A Receipts and Payments Account record only non-cash items. Sol:
✅ Correct Answer: (B)
False
Q. Charitable Organizations promote welfare of the common man, in general Sol:
✅ Correct Answer: (A)
True
Q. ) A Receipts and Payments Account is nothing but a summary of all capital receipts and payments.
✅ Correct Answer: (B)
False
Q. The fees received from life members is not a periodic subscription, hence are to be capitalized
✅ Correct Answer: (A)
True
Q. The fees are collected only once at the time of admission of a member, hence Entrance Fees should be treated as 'Revenue Receipt'.
✅ Correct Answer: (B)
False
Q. The Income and Expenditure Account is always accompanied with a cash flow statement Sol:
✅ Correct Answer: (B)
False
Q. The Income and Expenditure Account includes all revenue expenses and income
irrespective of its cash flow
Sol:
irrespective of its cash flow
Sol:
✅ Correct Answer: (A)
True