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JAMB Principles of Accounts 1995 Question 30

Question 30

Not-for-Profit Organisations

Where a non-profit making organization prepares the accounts using accruals basis of reporting, the statement showing how well the organization is doing is the

  1. A.appropriation account
  2. B.balance sheet
  3. C.income and expenditure account
  4. D.receipts and payment account.
Show the answer and explanation

Answer: C (income and expenditure account)

Explanation

The income and expenditure account is the accruals-basis statement that shows a club's surplus or deficit.