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Home Questions T4929ATBQ5
Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Assertion:NGOs are charitable trusts or societies and subscribers to such organizations are called members.
Reasoning: Profits are distributed among its members by the NPO.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Assertion (A) is true but Reasoning (R) is not correct.

Explanation:

No Profit is distributed among the members of the NPO organisations.The surplus generated in the form of excess of income over expenditure is not distributed amongst the members. It is simply added in the capital fund.

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