CIMA BA3 · Chapter 11 · Question 6 of 12
In the financial statements of a not-for-profit organisation such as a sports club, what is the equivalent of a business's capital account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The accumulated fund
Explanation
The accumulated fund represents the members' interest in the net assets of the club. It is increased by surpluses and reduced by deficits, in the same way that a trader's capital is changed by profits and losses.
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