Question 5
Not-for-Profit OrganisationsA company's receipts and payments account would include:
I. Sale of fixed assets
II. Subscription income
III. Depreciation charges
IV. Cash donations received
- A.I, II and IV only
- B.I and IV only
- C.II and III only
- D.All of the above
Show the answer and explanation
Answer: A (I, II and IV only)
Explanation
A receipts and payments account records cash in and out: sale proceeds, subscriptions and donations received. Depreciation involves no cash.