Question

The final accounts of a 'not-for-profit organization' consist of the following ______?

Options

• Receipt and Payment Account

• Income and Expenditure Account

• Balance Sheet

• All of the above

Answer 1

All of the above

Explanation:

Not-for-Profit At the end of each accounting period, organizations must also prepare financial statements. Although these organizations are not required to keep trading and profit and loss accounts, it is necessary to know whether the income generated during the year was sufficient to cover the expenses, as well as to provide the necessary financial information to members, donors, and contributors, as well as to the Registrar of Societies. They must prepare their final accounts at the conclusion of the accounting period for this reason, and as previously stated, the main rules of accounting are completely relevant in their preparation.

A 'not-for-profit organization's final accounts include the following:
(i) Receipt and Payment Account
(ii) Income and Expenditure Account, and
(iii) Balance Sheet