Clubs And Societies (Copy)
Topic 5.4: Clubs and Societies – Quiz
O Level and IGCSE Accounting
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. What is the main difference between a receipts and payments account and an income and expenditure account?
A. Income and expenditure is only for limited companies
B. Receipts and payments account uses accruals
C. Receipts and payments account records only cash movements
D. Income and expenditure records only donations
2. What type of account is the receipts and payments account?
A. Nominal account
B. Real account
C. Cash-based summary account
D. Accrual-based profit account
3. Subscriptions received in advance are classified as:
A. Asset
B. Income
C. Expense
D. Liability
4. Which of the following is a revenue-generating activity?
A. Buying a new clubhouse
B. Donations from members
C. Subscriptions from members
D. Salaries paid to staff
5. The opening accumulated fund represents:
A. Surplus made during the year
B. Total liabilities
C. Net assets at the beginning of the year
D. Subscriptions received
6. Which account is similar in function to a statement of financial position in non-profit organisations?
A. Cash book
B. Income and expenditure account
C. Receipts and payments account
D. Statement of affairs
7. Refreshment sales and purchases are recorded in which account?
A. Receipts and payments
B. Income and expenditure
C. Trading or activity account
D. Accumulated fund
8. A payment for electricity belongs in which category?
A. Expense
B. Asset
C. Revenue
D. Reserve
9. Which of these would not be included in a receipts and payments account?
A. Cash donation
B. Depreciation
C. Subscriptions received
D. Insurance paid
10. If subscriptions in arrears are to be recorded, which account will they affect?
A. Receipts and payments
B. Accumulated fund
C. Income and expenditure
D. General reserve
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
11. Which of these is used to calculate surplus or deficit for the year?
A. Receipts and payments account
B. Income and expenditure account
C. Accumulated fund
D. Bank reconciliation statement
12. How is the accumulated fund calculated?
A. Total liabilities – current assets
B. Total assets + liabilities
C. Total assets – total liabilities
D. Surplus for the year
13. Equipment donated to the club should be treated as:
A. Revenue
B. Current asset
C. Income
D. Capital receipt
14. Rent received from letting out the club premises is:
A. Expense
B. Income
C. Capital receipt
D. Reserve
15. Entrance fee is usually treated as:
A. Expense
B. Current liability
C. Capital receipt
D. Accrued income
16. Which of the following is NOT shown in a receipts and payments account?
A. Subscriptions received
B. Profit on refreshment sales
C. Donations received
D. Wages paid
17. If subscriptions are outstanding, the amount is shown as:
A. Income in receipts and payments
B. Expense in income and expenditure
C. Asset in statement of financial position
D. Liability in income and expenditure
18. The surplus from an income and expenditure account is:
A. Added to the receipts
B. Debited to the refreshment account
C. Added to the accumulated fund
D. Treated as a capital reserve
19. A sports club has refreshments income of $800 and cost of refreshments $500. Where is the $300 profit shown?
A. Income and expenditure account
B. Receipts and payments account
C. Statement of financial position
D. Suspense account
20. Subscriptions due but unpaid should be recorded as:
A. Liability
B. Accrued income
C. Prepaid income
D. Deferred revenue
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
21. Depreciation of club equipment is shown in:
A. Receipts and payments account
B. Trading account
C. Income and expenditure account
D. Accumulated fund
22. Insurance paid in advance is:
A. Current liability
B. Current asset
C. Expense
D. Income
23. Which of the following is included in the statement of financial position?
A. Total subscriptions received
B. Refreshment sales
C. Accumulated fund
D. Entrance fee received
24. A club’s surplus is:
A. Income less expenses
B. Total assets
C. Owner’s equity
D. Net working capital
25. If rent is paid for 13 months instead of 12, the extra month is:
A. Accrued income
B. Accrued expense
C. Prepaid expense
D. Expense for next year
26. Which of these would be included in receipts and payments but not in income and expenditure?
A. Depreciation
B. Accrued subscriptions
C. Purchase of furniture
D. Refreshment profit
27. Profit or loss from trading activities is:
A. Added directly to accumulated fund
B. Ignored in accounts
C. Transferred to income and expenditure account
D. Shown in receipts and payments
28. Donations received for a specific purpose should be:
A. Treated as income
B. Credited to accumulated fund
C. Shown as capital receipt
D. Added to general reserves
29. Expenses paid in arrears are recorded as:
A. Prepaid income
B. Current liability
C. Revenue expense
D. Accrued income
30. Subscription received in advance will appear in:
A. Income and expenditure account
B. Receipts and payments account only
C. Statement of financial position
D. Income section of profit and loss
Answer key and explanations
Topic 5.4 – Clubs and Societies
O Level and IGCSE Accounting
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
1. Correct Answer: C
Explanation: The receipts and payments account records actual cash movements only; it does not follow the accrual basis.
2. Correct Answer: C
Explanation: It is a simple cash-based summary of receipts and payments during a period.
3. Correct Answer: D
Explanation: Subscriptions received in advance are unearned income and are shown as a liability.
4. Correct Answer: C
Explanation: Subscriptions are regular payments by members and generate revenue for the club.
5. Correct Answer: C
Explanation: The accumulated fund is the equivalent of owner’s equity and equals total assets – total liabilities at the start.
6. Correct Answer: D
Explanation: In non-profit organisations, the statement of affairs is similar to a balance sheet.
7. Correct Answer: C
Explanation: Refreshment income and expense are shown in a trading or activity account to find profit.
8. Correct Answer: A
Explanation: Utility bills are considered an expense for running the club.
9. Correct Answer: B
Explanation: Depreciation is a non-cash expense and is excluded from receipts and payments.
10. Correct Answer: C
Explanation: Subscriptions in arrears are accounted in the income and expenditure account under accruals.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
11. Correct Answer: B
Explanation: The income and expenditure account includes all incomes and expenses on accrual basis and calculates surplus/deficit.
12. Correct Answer: C
Explanation: The accumulated fund = total assets – total liabilities.
13. Correct Answer: D
Explanation: Donated equipment increases assets and is treated as a capital receipt.
14. Correct Answer: B
Explanation: Rent received is regular income for the club.
15. Correct Answer: C
Explanation: Entrance fees are normally considered capital receipts unless specified otherwise.
16. Correct Answer: B
Explanation: Profit figures like refreshment profits are not included in cash-based receipts and payments accounts.
17. Correct Answer: C
Explanation: Subscriptions due from members are assets and appear in the balance sheet.
18. Correct Answer: C
Explanation: The surplus is added to the accumulated fund in the statement of financial position.
19. Correct Answer: A
Explanation: The profit from refreshments is recorded in the income and expenditure account.
20. Correct Answer: B
Explanation: Subscriptions due (unpaid) are recorded as accrued income, a current asset.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course
21. Correct Answer: C
Explanation: Depreciation is a non-cash expense recorded in the income and expenditure account.
22. Correct Answer: B
Explanation: Insurance paid in advance is a prepaid expense and shown as a current asset.
23. Correct Answer: C
Explanation: Accumulated fund is part of the capital/equity section of the statement of financial position.
24. Correct Answer: A
Explanation: Surplus is total income minus total expenses for the period.
25. Correct Answer: C
Explanation: The extra month paid in advance is a prepaid expense.
26. Correct Answer: C
Explanation: Purchase of furniture is a capital payment and appears only in receipts and payments.
27. Correct Answer: C
Explanation: Trading activity profits (e.g. from refreshments) are transferred to the income and expenditure account.
28. Correct Answer: C
Explanation: Donations for specific purposes are capital receipts and not general income.
29. Correct Answer: B
Explanation: Expenses still payable at year-end are accrued expenses and shown as current liabilities.
30. Correct Answer: C
Explanation: Subscription received in advance is a current liability in the statement of financial position.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Accounting Full Scale Course