BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Income and Expenditure Account records transactions of:
|
Revenue nature only
|
|
Capital nature only
|
|
Both Revenue and Capital nature
|
|
None of the above
|
Explanation:
Detailed explanation-1: -Income and expenditure account is like a profit & loss account. Only difference is that income & expenditure account is prepared by the non trading organization. This records only revenue nature items.
Detailed explanation-2: -Solution. The transactions recorded in Income and Expenditure Account are related only to the Current year.
Detailed explanation-3: -Profit on sale of fixed asset is shown in income and expenditure account.
There is 1 question to complete.