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WAEC Financial Accounting 2025 Question 25

Question 25

Not-for-Profit Organisations

A feature of the income and expenditure account is that

  1. A.the account records fixed assets
  2. B.the opening balance is shown on the account
  3. C.it is prepared on cash basis
  4. D.it is prepared on accrual basis
Show the answer and explanation

Answer: D (it is prepared on accrual basis)

Explanation

Like a profit and loss account, it includes accruals and prepayments for the period.