Question : Receipts and Payments Account of a non-profit organisation is prepared on the basis of:
Option 1: Accrual Basis
Option 2: Cash Basis
Option 3: Both Cash and Accrual
Option 4: None of these
Correct Answer: Cash Basis
Solution : Receipt and Payment account does not record non-cash payments and receipts. It records only cash receipts and payments irrespective of the fact whether they are of capital or of revenue nature or whether they relate to previous year, current year or next year. Hence, the correct option is 2.
Question : On which basis of accounting, Receipts and Payment account is prepared in case of Non Profit Organisation?
Question : The Receipts and Payments Account does not include:
Question : Cash Flow statement is based on -
Question : Cash Flow Statement by Indirect Method is prepared on the basis of ___________.
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