CAF-1 · Chapter 13 · Question 13 of 15
Which of the following is typically NOT a source of income for a Non-Profit Organization?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Proceeds from the issuance of equity shares.
Explanation
NPOs do not have ownership interests in the form of equity shares, so they cannot raise funds by issuing shares.
More Accounting for NPOs MCQs
- Q15What is the formula used in a subscription T-account to find the subscription income for the year?
- Q1What is the primary difference between a Non-Profit Organization (NPO) and a commercial entity?
- Q2In the financial statements of an NPO, what is the equivalent of 'Equity' or 'Retained Earnings'?
- Q3If a club member pays their annual subscription for the upcoming year in advance, how is this recorded in the current year's financial…
- Q4A sports club has members whose subscriptions are in arrears (unpaid) at the year-end. If the club expects to receive these amounts, how…