Question 28
Not-for-Profit OrganisationsWhich of the following items is not contained in the Receipts and Payments Account?
- A.Subscription paid in advance
- B.Stock paid for in advance
- C.Outstanding wages and salaries
- D.Donations.
Show the answer and explanation
Answer: C (Outstanding wages and salaries)
Explanation
A receipts and payments account shows only cash actually received or paid. Outstanding wages have not been paid, so they are left out.