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WAEC Financial Accounting 2025 Question 16

Question 16

Not-for-Profit Organisations

When the total of the debit side of income and expenditure account exceeds the total of the credit side, the difference is

  1. A.deficit
  2. B.surplus
  3. C.cash-in-hand
  4. D.accumulated fund
Show the answer and explanation

Answer: A (deficit)

Explanation

Expenditure greater than income gives a deficit.