CAF-1 · Chapter 13 · Question 10 of 15
At year-end, the statement of income and expenditure shows a 'Surplus'. Where is this surplus transferred?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It is added to the Accumulated Fund (Net Assets).
Explanation
A surplus (excess of income over expenditure) is added to the Accumulated Fund in the statement of financial position/statement of changes in net assets.
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