Multiple-choice questions on accounting: 1) Net worth = ? 2) Single entry system adopted by? 3) Non-profit org example? 4) Receipts & payments records? 5) Amount received as per donor's will is?

Here are the solutions to the multiple-choice questions: 1) Net worth is equals to: The accounting equation states that Assets = Liabilities + Capital (Net Worth). Rearranging this, we get Capital (Net Worth) = Assets - Liabilities. A) Assets - Liabilities The correct answer is A 2) In which of the following business concerns is single entry system generally adopted? The single-entry system is a simplified method of bookkeeping, typically used by small businesses or sole proprietorships that do not require a full double-entry system. A) Small The correct answer is A 3) Example of non-profit making organization is: A non-profit organization's primary objective is to provide services or achieve a social goal rather than to make a profit. Among the given options, a hospital can often operate as a non-profit entity. C) Hospital The correct answer is C 4) Receipts and payments account records transactions relating to: A Receipts and Payments account is a summary of all cash and bank transactions (both capital and revenue) that occurred during an accounting period, irrespective of whether they relate to the past, present, or future year. D) All of these The correct answer is D 5) The amount received by the concern as per the will of the donor is known as: An amount received by an organization according to the will of a deceased person is specifically termed a legacy. A) Legacy The correct answer is A 6) Subscription received in advance is a/an: When a subscription is received in advance, the organization has received cash but has an obligation to provide services in the future. This unfulfilled obligation represents a liability. C) Liability The correct answer is C 7) Lump sum amount received from members which enables them to become the member for whole of the life is called: A one-time payment made by a member to secure membership for their entire life is known as a life membership fee. A) Life membership fee The correct answer is A 8) The relationship between consignor and consignee is that of: In a consignment arrangement, the consignor (owner of the goods) entrusts goods to the consignee to sell on their behalf. This establishes a principal and agent relationship. A) Principal and agent The correct answer is A 9) In consignment all the expenses, either paid by the consignor himself or by the consignee are borne by the: The goods in a consignment remain the property of the consignor until they are sold. Therefore, all expenses related to the consignment are ultimately borne by the consignor. A) Consignor The correct answer is A 10) In case of delcrede commission the liability for bad debts will be on: Del credere commission is an additional commission paid to the consignee for undertaking the risk of bad debts arising from credit sales. Thus, with del credere commission, the consignee becomes liable for any bad debts. A) Consignee The correct answer is A 11) Abnormal loss occurs due to: Abnormal losses are unexpected and unusual losses that are not part of the normal course of business operations. These can arise from events like fire, accidents, theft, floods, etc. D) All of these The correct answer is D