Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounts for Non Profit Organsiation

Question:

Opening Stock (+) Purchase (-) Closing Stock formula applies to the following while calculating consumption

A. Machinery
B. Stationery
C. Furniture
D. Sports Equipment
E. Medicine

Choose the correct answer from the options given below:

Options:

B. D, C only

B, C, E only

B, D, E only

A & B only

Correct Answer:

B, D, E only

Explanation:

The correct answer is option 3- B, D, E only.

Not For Profit Organisation (NPO) : Consumables are products that used recurrently, i.e., items that “get used up” or discarded. For example, consumable school supplies are stationary such as pens, file folders, and toner or ink cartridges; Medicines in hospitals; Sports materials in Sports clubs etc.

*Machinery and furniture are fixed assets.