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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.
Income and expenditure contain only ______ items.
Explain any two features of Income and Expenditure account.
How will Income and Expenditure account benefit a non-trading sports organisation?
It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
It contains only revenue items.
Explain the term deficit in Income and Expenditure Account.
All donations received by non-trading concerns are entered in the liabilities side of the balance sheet. Justify either for or against.
Mention any two features of the Income and Expenditure Account.
Distinguish between Receipt and Income.
