Question

______ is a summary of cash transactions.

Options

• Income and Expenditure Account

• Balance Sheet

• Profit and Loss Account

• Receipts and Payment Account

Answer 1

Receipts and Payment Account is a summary of cash transactions.

Explanation:

The Receipts and Payment Account is a real account that provides a consolidated chronological summary of all actual cash and bank transactions made by a non-profit organization within a given fiscal year. It works similarly to a simplified cashbook, recording all cash receipts on the debit side and all cash payments on the credit side but completely ignoring non-cash entries and outstanding adjustments.