Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

General Donation of huge amount received by a NPO is to be treated as.....

Options:

Revenue receipt

Capital Receipt

Profit

Asset

Correct Answer:

Capital Receipt

Explanation:

General Donation can be classified as revenue or capital receipt. If it is a huge amount it will be considered a capital receipt and if it is a small amount, it is considered a revenue receipt.