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WAEC Financial Accounting 1993 Question 50

Question 50

Public Sector Accounting

Which of the following account is not kept by a local government?

  1. A.Departmental votes Revenue Account
  2. B.Departmental votes Expenditure Account
  3. C.Deposit Account
  4. D.Advances Account
  5. E.Profit and Loss Account.
Show the answer and explanation

Answer: E (Profit and Loss Account.)

Explanation

Government bodies do not aim to make profit, so they keep no profit and loss account.