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WAEC Financial Accounting 2019 Question 5

Question 5

Not-for-Profit Organisations

In a not-for-profit organization, accumulated fund is

  1. A.current assets plus fixed assets less total liabilities.
  2. B.long-term liabilities plus current liabilities.
  3. C.fixed assets plus current assets plus long-term liabilities.
  4. D.fixed assets less long-term liabilities less current liabilities.
Show the answer and explanation

Answer: A (current assets plus fixed assets less total liabilities.)

Explanation

Accumulated fund = total assets − total liabilities.