Question

It is a summary of cash transactions. It is prepared to ascertain the cash balance at the end of the accounting year.

Options

• Receipts and Payments Account

• Income and Expenditure Account

• Balance Sheet

• None of these 

Answer 1

Receipts and Payments Account

Explanation:

The Receipts and Payments Account is a summary of all cash transactions made by an organization over a specific period, usually an accounting year.