Practicing Success
Practicing Success
CUET Preparation Today
Which of the following statements is incorrect in case of 'Not for Profit Organisation? |
Debit side of Income and Expenditure Account records expenses and losses Balance at the end of Receipt and Payment Account represents cash in hand at the end and Bank Balance Income and Expenditure Account does not include Depreciation Income and Expenditure Account is like as Profit and Loss Account |
Income and Expenditure Account does not include Depreciation |
The correct answer is Option (3) → Income and Expenditure Account does not include Depreciation In the financial reporting of a Not for Profit Organization, it is crucial to incorporate Depreciation in the Income and Expenditure Account. Depreciation is allocated to account for the gradual wear and tear on fixed assets. This practice ensures a faithful representation of the organization's financial performance and sustainability over time. By accounting for depreciation, the Income and Expenditure Account accurately reflects the comprehensive assessment of the organization's financial health. Income and expenditure account incorporated all the revenue items whether they are paid in cash or non cash. |
