Income and Expenditure A c includes mdash ........

General Accounting Principles Not for profit organisation

Income and Expenditure A/c includes —

Revenue Items

Capital Items

Both (A) and (B)

None of these

- Understanding Income and Expenditure Account:

- An Income and Expenditure account is used by non-profit organizations.

- It records revenue items, showing income earned and expenditure incurred during a period.

- Capital items, which relate to asset purchases or sales, do not appear in this account.

- Option Analysis:

- Option 1 - Revenue Items: Correct, as this account exclusively includes revenue-related items.

- Option 2 - Capital Items: Incorrect, as capital items are part of a balance sheet, not this account.

- Option 3 - Both (A) and (B): Incorrect, only revenue items are included.

- Option 4 - None of these: Incorrect, as revenue items certainly belong here.

- The correct answer is Revenue Items from Option 1.

Submit Error