PRC-3 · Chapter 2 · Question 10 of 61
A local sports club collects subscriptions from its members. At the end of the year, instead of calculating a 'profit', what does the club report?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Surplus or deficit of income over expenditure
Explanation
Not-for-profit organizations, such as clubs and societies, produce accounts showing a surplus or deficit of income over expenditure instead of a profit and loss account.
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