State whether the following statement is True or False with reasons.
Charitable Institutions prepare Profit and Loss Account, at the end of every financial year.
Charitable Institutions prepare Profit and Loss Accounts at the end of every financial year. - False.
Charitable Institutions, Not for Profit concerns, do not undertake any trading activities and hence instead of a Profit and Loss Account prepare an Income-Expenditure Account to record all revenue expenses/losses and revenue incomes/gains of current year.
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- Accounts of “Not for Profit” Concerns