State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

MCQ

True or False

State whether the following statement is True or False.
‘Not for Profit’ concerns concentrate their efforts on maximizing their profit.

Options

True
False

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Solution

False
Explanation: Unlike profit-making organisations, NPOs do not have profit-making as their primary motive. In fact, they are formed to render services to their members or to society at large. For example, aided schools, clubs, hospitals etc. The primary motive of all these organisations is to provide service to others.

Concept: Features of "Not for Profit" Concerns.

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Chapter 7: Accounts of 'Not For Profit' Concerns - Exercise [Page 228]

Q 2 Q 1 Q 3

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