Practice Income And Expenditure Account (10.4) - Non-Trading Organisations

Practice: Income and Expenditure Account

Lesson 10.4Non-Trading Organisations

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9 questions

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6 sample questions

Question 1.
What does the Income and Expenditure Account reflect?
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Think about its purpose in accounting.
Question 2.
What is meant by a surplus in the context of the Income and Expenditure Account?
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Consider financial success.
3Question 3.
What is the main purpose of the Income and Expenditure Account?
- To show profits
- To record income and expenses
- To compile cash transactions
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Think about its non-trading nature.
4Question 4.
True or False: The Income and Expenditure Account includes capital receipts.
- True
- False
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Focus on what typical income and expenses involve.
Question 5.
A sports club received membership fees of $20,000 and incurred total expenses of $22,500. Calculate the surplus or deficit for the club and discuss potential implications.
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Analyze the difference between income and expenses.
Question 6.
If an organisation has an income of $50,000 and expenses amounting to $40,000 but does not account for $5,000 in depreciation, what will be the adjusted surplus?
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Remember to factor in depreciation as part of expenses for accurate reporting.

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