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JAMB Principles of Accounts 2007 Question 16

Question 16

Not-for-Profit Organisations

The receipts and payments account of a not-for-profit-making organization plays a similar role in a profit-making organization as

  1. A.a cash account
  2. B.a balance sheet
  3. C.an income account
  4. D.an expenses account.
Show the answer and explanation

Answer: A (a cash account)

Explanation

A receipts and payments account summarises cash received and paid in the year, just like a cash account.