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    Question

    Which of the following statements is true about the

    Income and Expenditure Account in Accounting?
    A It shows the financial position of the company at a specific point in time Correct Answer Incorrect Answer
    B It shows the cash inflows and outflows of the company over a specific period. Correct Answer Incorrect Answer
    C It shows the revenues and expenses of the company over a specific period. Correct Answer Incorrect Answer
    D It shows the assets, liabilities, and equity of the company at a specific point in time. Correct Answer Incorrect Answer

    Solution

    The Income and Expenditure Account is a type of financial statement used by non-profit organizations to show their revenues and expenses over a specific period of time, usually a year. It is similar to the Profit and Loss Account used by for-profit organizations.

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