Question :
Assertion (A): Income and Expenditure Account is akin to Profit and Loss Account.
Reason (R): The Not-for-Profit Organisations are not required to prepare financial statements at the end of the each accounting period.
Option 1:
Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R)
Option 2:
Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)
Option 3: Assertion (A) is true but Reason (R) is false
Option 4: Reason (R) is true but Assertion (A) is false
Correct Answer: Assertion (A) is true but Reason (R) is false
Solution : Income and Expenditure Account is like Profit and Loss Account. NPOs are required to prepare financial statements at the end of the each accounting year. Hence, the correct option is 3.
