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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
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Solution
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.
RELATED QUESTIONS
Income and Expenditure Account is a ______ account.
Justify either for or against by giving a reason for the following statement. ‘Income and Expenditure account shows the opening and closing balances of cash in hand and cash at bank.’
______ depicts the capital fund of the organization.
The closing balance of this account shows surplus/deficit ______.
Explain any two features of Income and Expenditure account.
The closing balance of this Account shows surplus or deficit for the year.
It contains only revenue items.
On the other hand, if the total of ______ side is greater than the total of ______ side, it is known as 'deficit' or 'excess of expenditure over income'.
Explain the term surplus in Income and Expenditure Account.
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
