BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income and Expenditure Account is prepared to find out
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Profit or loss
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Cash and bank balance
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Surplus or deficit
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Financial position
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Explanation:
Detailed explanation-1: -The income and expenditure account is prepared by the non-trading entities to determine surplus or deficit of income over expenditures for a particular time frame. The accumulated or accrual concept of accounting is rigidly pursued while preparing income and expenditure a/c of non-trading concerns.
Detailed explanation-2: -When the revenue generated by a non-trading or non-profitable organization exceeds the total expenditure incurred in a financial year, the Income & Expenditure account shows a surplus balance. It is usually termed as excess income over expenditure.
Detailed explanation-3: -Income and expenditure account reveals surplus or deficiency.
There is 1 question to complete.