SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 1 · Warm-up

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SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 1 · Warm-up – 12 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
The Receipts and Payments Account of a non-profit organisation is a summary of its:

Correct Answer: A [cash book]

Explanation:

It summarises cash and bank receipts and payments of the period.

2.  
The Income and Expenditure Account is prepared on the:

Correct Answer: D [accrual basis]

Explanation:

Only the income and expenses of the year, received or not.

3.  
The excess of income over expenditure of a club is called:

Correct Answer: C [surplus]

Explanation:

NPOs do not use the word 'profit' for their result.

4.  
The 'capital' of a non-profit organisation is usually called the:

Correct Answer: B [capital fund (general fund)]

Explanation:

Also called the accumulated fund.

5.  
Depreciation on furniture of a club appears in:

Correct Answer: A [the Income and Expenditure Account only]

Explanation:

Depreciation is non-cash: never in R&P it is an expense in I&E.

6.  
The Receipts and Payments Account begins with:

Correct Answer: D [the opening balance of cash and bank]

Explanation:

Answer: the opening balance of cash and bank. It is a real (cash) account.

7.  
As per the usual treatment, life membership fees received are:

Correct Answer: B [capitalised (added to the capital fund)]

Explanation:

They give benefit over many years – a capital receipt.

8.  
A legacy received by a charitable trust is normally:

Correct Answer: C [added to the capital fund]

Explanation:

Legacy (gift under a will) is a capital receipt.

9.  
Honorarium paid to a visiting lecturer is shown on the:

Correct Answer: B [expenditure side of the Income and Expenditure Account]

Explanation:

It is a revenue expense of the year.

10.  
Fill in the blankSubscriptions received in advance for the next year are shown as a ______ in the Balance Sheet.

Correct Answer: C [liability]

Explanation:

They belong to next year – the club owes the service.

11.  
Odd one outOdd one out (by nature of receipt, usual treatment):

Correct Answer: A [Legacy]

Explanation:

Legacy is capital; the others are revenue receipts.

12.  
Which account of a club shows the purchase of a new sports ground in full?

Correct Answer: D [Receipts and Payments Account]

Explanation:

R&P shows all cash payments, capital or revenue.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
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