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Question
Receipt and payment account has the following limitation(s).
Options
It does not reveal surplus or deficit for the year.
It does not indicate financial position of the organisation.
It does not disclose details of receipts and payment.
All of these
Solution
All of these
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RELATED QUESTIONS
Write any two features of the Receipt and Payment Account.
State five uses of Receipts and Payments account.
All cash payments are recorded on the ______ side of the receipt and payment accounts.
It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.
Its balance at the end shows the cash in hand and at bank (or overdraft) at the end of the year.
It contains both capital and revenue items.
Receipt and Payment account is a _____ account.
Give two/three uses of Receipts and Payments Account.
A receipts and payments account is a nominal account. Justify a reason either for or against.
What is Receipts and Payments Account?
