Question

Features of Income and Expenditure are:

(i) No opening or closing balance

(ii) Prepared on an accrual basis

(iii) Records only Revenue Items

(iv) Relevant only to the current year

Options

• (i), (ii), (iii)

• (ii), (iii), (iv)

• (i), (ii), (iii), (iv)

• (ii), (iii)

Answer 1

(i), (ii), (iii), (iv)

Explanation:

The following are some of the most important characteristics of the Income and Expenditure Account:

1. There isn't an opening or closing balance.
2. On an accrual basis, this report was created.
3. Only revenue items are recorded.
4. Only applies to the current year.