CBM Day 1

What do you mean by the designated funds ?

• Funds that are designated by the donor

• Funds that are designated by the Government

• Funds that Board has set aside for certain purpose

• Funds that are donated by the Government

How do you account for the laptop purchased from the project ?

• Laptop (Expense ) Ac Debit To, Bank

• Laptop (Assets) Ac Debit

  To, Bank

• PPE Ac Debit

  To, Capital Reserve

• Laptop Ac Debit

  To, Capital Reserve

Donor CBM handed over the assets procured from the project by Sathi NGO to the NGO. How would you account for this ?

• No Entry needs to be passed

• Property, Plant and Equipment Ac Debit

  To, Capital Reserve

• Capital Reserve Ac Debit

  To, Property, Plant and Equipment

• Property, Plant and Equipment Ac Debit

  To, CBM

The NGO has obtained grant amounting to Rs. 80,000 received for the Project funded by CBM. How do you recognize the journal entry ?

• Bank Ac Debit

  To, Grant Income

• Bank Ac Debit

  To, CBM Liability

• Bank Ac Debit

  To, Restricted Fund - CBM

• Bank Ac Debit

  To, Fund Received

The NGO has incurred Rs. 50,000 expenses out of the fund received Rs. 80,000. How do you recognize the Grant Income ?

• No Entry needs to be passed

• Grant Income 50,000

  To, CBM 50,000

• Restricted Fund - CBM 50,000

  To, Grant Income - 50,000

• Restricted Fund - CBM 50,000

  To, Fund Received 50,000

Whose responsibility is it to prepare the financial statements of the NGO ?

• Auditors

• Management

• Board

• Tax Office

Which one is not the component of the COSO Framework ?

• Control Environment

• Risk Assessment

• Investigation

• Communication

What would be the accurate chart of account code for Head "Advances to Employees" to be created under 100-Advances

• 100

• 200

• 101

• 100-01

How are restricted funds typically different from unrestricted funds in nonprofit accounting?

• Restricted funds have higher financial reporting requirements.

• Restricted funds can only be used for program activities, while unrestricted funds can be used for any purpose.

• Restricted funds are only available for program expenses.

• Restricted funds are tax-exempt while unrestricted funds are not.

When a nonprofit organization receives a grant with no donor-imposed restrictions, how should it classify the funds in its financial statements?

• As temporarily restricted revenue

• As unrestricted revenue

• As a liability

• As a designated fund