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CSS Financial and Cost Accounting P-1 QUESTION #1201
Question 1
Which of the following is a financial statement prepared specifically by not-for-profit organizations?
  • Statement of Comprehensive Income
  • Statement of Profit and Loss
  • Receipts and Payments Account✔️
  • Statement of Changes in Equity
Correct Answer Explanation
Not-for-profit organizations (NPOs) such as clubs, charities, and societies prepare a Receipts and Payments Account — a summary of cash received and cash paid during the period. They also prepare an Income and Expenditure Account (instead of a Profit and Loss Account) to show surplus or deficit.