Question

An Income and Expenditure Account and a Balance sheet is prepared as final accounts by a ________. (Fill in the blank by choosing correct option)
a) 'not for Profit' Concern
b) Trading Concern
c) commercial Organisation
d) Public Limited company

Answer 1

NOT FOR PROFIT ORGANIZATION.....

Answer 2

Answer:

The correct answer to the given question is option (a) 'not for profit' concern.

Explanation:

The final account prepared by the 'not for profit' concern are equivalent to the profit and loss account prepared for-profit concern.

This is to ascertain for a particular period, surplus or deficit of income over expenditure of the 'not for profit' concern. This helps in maintaining the surplus or deficit record of the trading.