Practice What Is The Income And Expenditure Account? (10.4.1) - Non-Trading Organisations

Practice: What is the Income and Expenditure Account?

Lesson 10.4.1Non-Trading Organisations

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9 questions

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6 sample questions

Question 1.
What is the primary purpose of the Income and Expenditure Account?
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Think about what kind of organizations use this account.
Question 2.
Give one example of income recorded in an Income and Expenditure Account.
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Consider the sources of funds for non-profit organizations.
3Question 3.
What does the Income and Expenditure Account primarily measure?
- Profit
- Surplus or Deficit
- Revenues only
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Think about the purpose of the account.
4Question 4.
True or False: The Income and Expenditure Account includes capital receipts.
- True
- False
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Reflect on what constitutes operational income.
Question 5.
A non-profit theatre organization has the following information: total income of $75,000, total expenses of $60,000, and an advance subscription of $5,000 received for the next year. Calculate the surplus or deficit for the current year.
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Remember, only count this year's recognized income.
Question 6.
An educational institution reports the following: income from grants ($20,000), total expenditures ($35,000), and has a deferred income from post-enrollment fees of $3,000. What is the institution's surplus or deficit?
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Only current recognized income should factor into your calculations.

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