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Question
______ depicts the capital fund of the organization.
Options
Profit and Loss Account
Trading Account
Balance Sheet
Nominal Account
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Solution
Balance Sheet depicts the capital fund of the organization.
Explanation:
The balance sheet is a financial position statement that clearly illustrates an organization’s capital fund (or general fund) on the liabilities side. It provides a financial snapshot of cumulative surpluses, life membership fees, and capital receipts over time, whereas the other alternatives are income statements or account classifications that only track operating revenue or expenses.
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.’
The closing balance of this account shows surplus/deficit ______.
Explain any two features of Income and Expenditure account.
______ account is prepared to ascertain surplus or deficit at the end of an accounting year.
How is Receipts & Payments Account different from Income & Expenditure Account?
It contains only revenue items.
If the total of ______ side is greater than the total of ______ side, it is called ‘surplus’ or ‘excess of income over expenditure’.
Explain the term surplus in Income and Expenditure Account.
What is Income and Expenditure Account?
