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Accounting For Not For Profit Organisation — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting For Not For Profit Organisation1 Mark
MCQ
Interest on specific fund investment given effect as _____________.
  • A
    Added to asset
  • B
    Deducted from assets
  • ✓
    Added to liabilties
  • D
    Deducted from liabilties
✓

Answer

Correct option: C.
Added to liabilties
The interest earned by the organisation on certain investment made by people is added to the liabilities.
This is because the interest earned has to be paid to the investors since it is a not-for-profit organisation.

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