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Answer in one sentence only. Why Income and Expenditure Account is prepared? - Book Keeping and Accountancy

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Question

Answer in one sentence only.

Why Income and Expenditure Account is prepared?

One Line Answer
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Solution

Income and Expenditure Account is prepared to ascertain whether the concern has sufficient income to meet its expenses.

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Chapter 2: Accounts of ‘Not for Profit’ Concerns - Exercise 2.1 (Objective Type Questions) [Page 113]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2.1 (Objective Type Questions) | Q 1. E) 4. | Page 113
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