Accounting - Practice Test

[#2256] Which of the following is non-profit organization?

(A) Sole proprietorship

(B) Partnership

(C) Limited company

(D) Trust

Correct Answer

(D) Trust

Explanation

Solution: Trust is non-profit organization. A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit.

[#2257] How many companies are involved in the scheme of internal reconstruction?

(A) One

(B) Two

(C) Three

(D) Unlimited

Correct Answer

(A) One

[#2258] Outstanding Expenses Account is:

(A) Income and Expenditure Account

(B) Nominal Account

(C) Personal Account

(D) Real Account

Correct Answer

(C) Personal Account

[#2259] If profits are 25% of selling price, percentage of profit to cost would be

(A) 20%

(B) 25%

(C) $$33frac{1}{3}\% $$

(D) 30%

Correct Answer

(C) $$33frac{1}{3}\% $$

[#2260] "Double entry system is that system of book keeping where accounting is done through personal and impersonal accounts." This definition was given by-

(A) William Pickles

(B) M. J. Killer

(C) R. N. Carter

(D) None of the above

Correct Answer

(C) R. N. Carter

Accounting - Study Mode

[#2256] Which of the following is non-profit organization?

Correct Answer

Explanation

[#2257] How many companies are involved in the scheme of internal reconstruction?

Correct Answer

[#2258] Outstanding Expenses Account is:

Correct Answer

[#2259] If profits are 25% of selling price, percentage of profit to cost would be

Correct Answer

[#2260] "Double entry system is that system of book keeping where accounting is done through personal and impersonal accounts." This definition was given by-

Correct Answer