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 records transactions of:
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Revenue nature only
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Capital nature only
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Both Revenue and Capital nature
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None of the above
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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.