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Question
It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.
Options
Receipts and Payments Account
Income and Expenditure Account
Balance Sheet
None of these
Solution
Receipts and Payments Account
Explanation:
Receipts and Payments Account provides a summary of all cash transactions, showing the inflows and outflows of cash.
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RELATED QUESTIONS
The objective of preparing a ______ account is to find out the cash position of the organization.
Write any two features of the Receipt and Payment Account.
State five uses of Receipts and Payments account.
In receipt and payment account opening balance of cash in hand, cash at bank and all cash receipts are shown on the ______ side.
The primary objective of preparing this Account is to find out the cash position, opening and closing balances of cash in hand and at bank.
It contains both capital and revenue items.
Receipt and Payment account is a _____ account.
Give two/three uses of Receipts and Payments Account.
Give one difference between Receipts and Payments Account and Cash Book.
A receipts and payments account is a nominal account. Justify a reason either for or against.
