Q28. Identify the basis on which Income and Expenditure Account is prepared by a Not-for-profit orga

Q: What is the correct answer for CUET UG Accounting Q28?

The correct answer is A. Sol. Income and Expenditure Account in a Not-for-profit organization is typically prepared on an accrual basis of accounting. This means that it records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This approach is similar to how for-profit organizations prepare their income statements.

Q: Q28. Identify the basis on which Income and Expenditure Account is prepared by a Not-for-profit organisation (a) Accrual Basis (b) Cash Basis (c) Partial use of both Accrual as well as cash basis (d)…

The correct answer is A. Sol. Income and Expenditure Account in a Not-for-profit organization is typically prepared on an accrual basis of accounting. This means that it records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This approach is similar to how for-profit organizations prepare their income statements.

Q: What are the options for this CUET UG Accounting question?

A. Accrual Basis · B. Cash Basis · C. Partial use of both Accrual as well as cash basis · D. Management criteria Basis

Question

Q28. Identify the basis on which Income and Expenditure Account is prepared by a Not-for-profit organisation
(a) Accrual Basis
(b) Cash Basis
(c) Partial use of both Accrual as well as cash basis
(d) Management criteria Basis

FirstInTest · Accepted Answer

Sol. Income and Expenditure Account in a Not-for-profit organization is typically prepared on an accrual basis of accounting. This means that it records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This approach is similar to how for-profit organizations prepare their income statements.

Answer

Accrual Basis

Answer

Cash Basis

Answer

Partial use of both Accrual as well as cash basis

Answer

Management criteria Basis

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