Identify the salient features of the Income and Expenditure account from the following:
A. It is prepared on an accrual basis.
B. It includes both revenue as well as capital items.
C. It is prepared after taking into account the additional information regarding outstanding prepaid expenses and depreciation etc.
D. Its result is surplus or deficit.
E. It is prepared with the help of Receipts and Payments Account

Choose the correct answer from the options given below:

A, C, D and E only

An income and expenditure account of a non-profit organisation serves as a summary of financial activities throughout the accounting year, similar to a profit and loss statement prepared using accrual accounting principles in the context of businesses. It exclusively encompasses revenue-related items, with the final balance indicating either a surplus (where income exceeds expenditure) or a deficit (where expenditure surpasses income). The Income and Expenditure Account is compiled using the accrual basis of accounting, and it relies on the Receipts and Payments Account as well as supplementary data concerning outstanding and prepaid expenses, depreciation, and similar factors. Consequently, adjustments are necessary for several items found in the Receipts and Payments Account.