Select the Liabilities which are shown in the Balance Sheet of a Not-for-Profit Organisation :
(A) Bank Overdraft.
(B) Contingent Liabilities
(C) Legacies received during the year.
(D) General Fund.
(E) Subscription Received in Advance.
Choose the correct answer from the options given below:
(
This question was previously asked in
Shift 30/05/2023 8:30 AM - 10:30 AM
A
(A), (B), (D) and (E) only
B
(A), (B), (C) and (E) only
C
(A), (C), (D) and (E) only
D
(A), (C), and (E) only
Correct Answer
(A), (C), (D) and (E) only
Detailed Explanation
- (A) Bank Overdraft: This is a liability and is shown on the liabilities side of the balance sheet.
- (C) Legacies received during the year: Legacies received represent funds received by the not-for-profit organization and are considered a liability until they are utilized for the organization's objectives.
- (D) General Fund: The General Fund represents the accumulated surplus of the organization, and it is shown on the liabilities side of the balance sheet.
- (E) Subscription Received in Advance: This is a liability because the organization has received cash in advance for services (subscriptions) that it has not yet provided.
Contingent Liabilities (option B) are typically not shown on the face of the balance sheet of a not-for-profit organization because they are potential obligations that depend on future events. They are disclosed in the notes to the financial statements.
So, the correct answer is (3) (A), (C), (D), and (E) only.
Get Dubuddy App
Practice on the go with our mobile app
More CUET Questions
1
Identify the basis on which share of Profit or Loss of deceased partner is calculated from the date of last balance sheet to the date of death of that partner. (
2
The need of codification is _____
(
3
According to partnership Act, if the deed is silent then the profit sharing ratio will be: (Assuming there are only two partners)
(
4
Calculate the amount of A's Commission from the following items:
Net profit before commission Rs. 1,65,000 and Mr. A is entitled for a commission of 10% of net
profit after charging such commission.
(
Test Series
CUET Subjects
Your CUET Journey Starts with DuBuddy
CUET ki Practice Means DuBuddy Pe Practice