CAF-1 · Chapter 13 · Question 8 of 15
Which of the following statements replaces the 'Statement of Profit or Loss' for a Non-Profit Organization?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Statement of income and expenditure.
Explanation
Instead of a statement of profit or loss, NPOs prepare a Statement of Income and Expenditure to show their financial performance and any surplus or deficit.
More Accounting for NPOs MCQs
- Q10At year-end, the statement of income and expenditure shows a 'Surplus'. Where is this surplus transferred?
- Q11When an NPO uses fund accounting, how is depreciation expense treated?
- Q12An NPO sets up a specific fund strictly to contribute to the school fees of local children using a grant of Rs. 24 million. How are these…
- Q13Which of the following is typically NOT a source of income for a Non-Profit Organization?
- Q14If an NPO has a deficit for the year, how is it presented?