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WAEC Financial Accounting 1994 Question 24

Question 24

Not-for-Profit Organisations

Which of the following serves the same purpose as the Income and Expenditure Account of a non-trading organisation?

  1. A.Trading Account
  2. B.Profit and Loss Account
  3. C.Balance Sheet
  4. D.Income Distribution Account
  5. E.Appropriation Account.
Show the answer and explanation

Answer: B (Profit and Loss Account)

Explanation

Both show income less expenses for the period, giving profit (surplus) or loss (deficit).