CIMA BA3 · Chapter 11 · Question 8 of 12
In an income and expenditure account, what is an excess of income over expenditure called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A surplus
Explanation
Not-for-profit organisations describe the excess of income over expenditure as a surplus and the excess of expenditure over income as a deficit, rather than profit or loss. The surplus is added to the accumulated fund.
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