Question

Charitable Institutions prepare Profit and Loss Account, at the end of every financial year. (State True or False)

Answer 1

FALSE....

NPO PREPARE INCOME AND EXPENDITURE AC

AT THE END OF YEAR.

Answer 2

The statement- Charitable Institutions prepare Profit and Loss Account, at the end of every financial year is false.

* Usually 'Not for profit organisations' which are also a type of charitable institution makes Income and Expenditure account at the end of every financial year.

* The 'not for profit institution' ( as the name suggests) is not a profit making organisation and hence they do not maintain any profit and loss account.

* It is mostly maintained by profit making commercial institutions.