Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Which of the following financial statement is prepared by a Not For Profit Organization?

Options:

Receipts and Payment Account

Profit and Loss Account

Cash Book

None of the above.

Correct Answer:

Receipts and Payment Account

Explanation:

Receipts and payment A/c, Income and Expenditure account and balance sheet are prepared by a NPO. Receipts and Payments is a summary of the cash book. Its form is identical with that of simple cash book.