passwella.
Menu

WAEC Financial Accounting 2014 Question 26

Question 26

Not-for-Profit Organisations

In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a

  1. A.surplus.
  2. B.shortfall.
  3. C.loss.
  4. D.deficit.
Show the answer and explanation

Answer: D (deficit.)

Explanation

In an income and expenditure account, an excess of expenditure over income is called a deficit.