Question

2) Give two distinction between a not – for – profit organization and a trading organization. 2

Answer 1

Answer:

1) The main purpose of NPO is not to earn profit while for trading it's main purpose is to earn profit

2) Financial statements of NPO consists of receipts & payment account, and Income & expenditure account and balance sheet . while Financial statements of teading consist of Trading account, profit and loss account and balance sheet .