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Out of the billowing items, which one is shown in the ‘Receipts and Payments Account” of a not for profit organisation?
Accrued subscription
Outstanding salary
Depreciation
None of these
- Accrued subscription: Revenue earned but not yet received. It is not recorded in the Receipts and Payments Account, as it focuses on actual cash transactions.
- Outstanding salary: Salaries due but not paid. It's a liability and not shown in the Receipts and Payments Account, which only deals with cash flows.
- Depreciation: A non-cash expense representing the reduction in asset value over time. It doesn't appear in the Receipts and Payments Account because it involves no cash movement.
- None of these: The Receipts and Payments Account records only cash and bank transactions. None of the above items involve actual cash transactions.
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