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JAMB Principles of Accounts 1998 Question 30

Question 30

Not-for-Profit Organisations

A non-profit-making organization differs from a profit-making one in that

  1. A.it does not earn income
  2. B.proceeds from sale of shares form part of its income
  3. C.all its income is committed
  4. D.annual subscriptions and levies form part of its income.
Show the answer and explanation

Answer: D (annual subscriptions and levies form part of its income.)

Explanation

Clubs and societies get their income mainly from members' subscriptions and levies.