BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Profit
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Cash in hand
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Surplus or Deficit
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Bank overdrraft
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Detailed explanation-1: -b’Income and expenditure account can be defined as an account that reveals surplus or deficit of a non-trading concern by matching incomes and expenses of a specified accounting period.
Detailed explanation-2: -Income and expenditure account reveals surplus or deficiency.
Detailed explanation-3: -Income and expenditure account is prepared by a non-trading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period.
Detailed explanation-4: -Surplus: the amount by which your income is greater than your spending. Deficit: the amount by which your spending is greater than your income.
Detailed explanation-5: -The surplus or deficit from the income and expenditure account is moved to the capital fund a/c.