Practicing Success
Match the following-
Choose the correct answer from the options given below: |
(A)-(IV), (B)-(III), (C)-(I), (D)-(II) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) (A)-(II), (B)-(I), (C)-(IV), (D)-(III) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) |
(A)-(IV), (B)-(III), (C)-(I), (D)-(II) |
* Not-for-Profit Organisations refer to the organisations that are for used for the welfare of the society and are set up as charitable institutions which function without any profit motive. The main objective of keeping records in such organisations is to meet the statutory requirement and help them in exercising control over utilisation of their funds. They also have to prepare the financial statements at the end of each accounting period (usually a financial year) and ascertain their income and expenditure and the financial position. The final accounts of a ‘not-for-profit organisation’ consist of the following: * Part of issued capital which can be called only in the event of winding up: A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on winding up of the company. * Issue of Debentures- A collateral security may be defined as a subsidiary or secondary or additional security besides the primary security when a company obtains a loan or overdraft from a bank or any other financial Institution. It may pledge or mortgage some assets as a secured loan against the said loan. But the lending institutions may insist on additional assets as collateral security so that the amount of loan can be realised in full with the help of collateral security in case the amount from the sale of principal security falls short of the loan money. In such situation, the company may issue its own debentures to the lenders in addition to some other assets already pledged. Such an issue of debentures is known as ‘Debentures issued as Collateral Security’. * A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities. It requires that an enterprise should prepare a cash flow statement and should present it for each accounting period for which financial statements are presented. |