Question

______ account is prepared to ascertain surplus or deficit at the end of an accounting year.

Options

• Income and Expenditure

• Balance sheet

• Profit and Loss

• Receipts and Payment

Answer 1

Income and Expenditure account is prepared to ascertain surplus or deficit at the end of an accounting year.

Explanation:

The Income and Expenditure Account is a nominal account created by non-profit organizations at the conclusion of the fiscal year to document their current revenue earnings and expenses. Following the accrual foundation of accounting, the ultimate balancing figure decides whether there is a surplus (revenue exceeds expenditure) or a deficit.