Question

name four types of institutions which prepare income and expenditure account?​

Answer 1

Answer:

The role of a non-trading firm is to provide services to its members. However, in order to do the same, it needs to earn some revenue and incur certain expenditures. When a non-profit firm does so, it needs to prepare an income and expenditure account, which can help it in ascertaining the surplus earned or deficiency incurred during a period. Let us understand more about the income and expenditure account which is prepared by a non-profit organization.

Explanation:

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Answer 2

Income and expenditure account is prepared by non profit organisations only.

Explanation: as there are a lot NGO's are running in the country , as there motive is to raise awareness about sports, science, education, social , any agenda etc., in short they are not here to earn profit but to raise awareness or to help people in the society but even after that there are some expenses and income generate in the course if there operations.

to calculate and have idea of flow of fund , non profit organizations prepare income and expenditure account to ascertain loss or surplus in the organization

in short any non profit can prepare its accounts on income and expenditure basis.