Question on: SS2 Accounting - Differences Between Receipts And Payment Accounts And Income And Expenditure
What is the main difference between receipts and payments accounts and income and expenditure accounts?
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A
Receipts and payments accounts are cash-based, while income and expenditure accounts are accrual-based.
B
Receipts and payments accounts only show income earned and expenses incurred, while income and expenditure accounts show all cash inflows and outflows.
C
Receipts and payments accounts show the actual cash balance of an organization, while income and expenditure accounts show the financial performance of the organization.
D
None of the above.
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Correct Option: A
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