Income And Expenditure Account: Meaning - SS2 Accounting Past Questions and Answers - page 1
What is an income and expenditure account?
A statement showing the income and expenses of an organization over a specific period
A document outlining the organization's long-term financial goals
A report detailing the organization's assets and liabilities
None of the above
What is included in the income section of an income and expenditure account?
All the revenue generated by the organization
All the costs incurred by the organization
All the assets owned by the organization
None of the above
What does the expenditure section of an income and expenditure account show?
All the revenue generated by the organization
All the costs incurred by the organization
All the assets owned by the organization
None of the above
What is the purpose of an income and expenditure account?
To determine the net income or loss of an organization
To identify the organization's long-term financial goals
To determine the organization's current assets and liabilities
None of the above
What is the difference between the income section and the expenditure section of an income and expenditure account?
The income section shows all the revenue generated by the organization, while the expenditure section shows all the costs incurred by the organization.
What is the significance of an income and expenditure account for an organization?
An income and expenditure account helps an organization assess its financial performance, make decisions about future operations, prepare tax returns, secure loans, and attract investors.