Question

Excess of income over expenditure in ‘Not for Profit Concern’ is termed as ______.

Options

• Deficit

• Profit

• Surplus

• Loss

Answer 1

Excess of income over expenditure in ‘Not for Profit Concern’ is termed as surplus.

Explanation:

In ‘Not for Profit’ organizations, the excess of income over expenditure is termed surplus, not profit, because these organizations aim to serve the community rather than generate profit.