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Account of Non-Profit Making Organization: Introduction - SS2 Accounting Past Questions and Answers - page 1

1

What is recorded as revenue in a non-profit organization's accounts?

A

Program expenses

B

Fundraising expenses

C

Contributions and donations

D

General and administrative expenses

correct option: c
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2

What are program expenses in a non-profit organization?

A

Expenses related to raising funds for the organization

B

Expenses directly related to the organization's mission and purpose

C

Expenses not directly related to the organization's mission and purpose

D

All of the above

correct option: b
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3

What are general and administrative expenses in a non-profit organization?

A

Expenses directly related to the organization's mission and purpose

B

Expenses not directly related to the organization's mission and purpose

C

Expenses related to raising funds for the organization

D

All of the above

correct option: b
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4

What are fundraising expenses in a non-profit organization?

A

Expenses related to raising funds for the organization

B

Expenses directly related to the organization's mission and purpose

C

Expenses not directly related to the organization's mission and purpose

D

All of the above

correct option: a
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5

What are grants and contracts in a non-profit organization?

A

Funds donated by individuals and corporations

B

Restricted funds for a specific purpose or program

C

Expenses directly related to the organization's mission and purpose

D

Expenses not directly related to the organization's mission and purpose

correct option: b
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6

What is the purpose of the accounts in a non-profit organization?

The accounts of a non-profit organization are designed to track the organization's revenue and expenses, as well as the use of restricted funds and grants, to ensure that the organization is operating within its budget and using its resources effectively to support its mission and purpose.

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7

What are program expenses in a non-profit organization? 

Program expenses in a non-profit organization are expenses directly related to the organization's mission and purpose, such as salaries and benefits for staff working on programs, supplies, and other costs associated with delivering the organization's services.

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