Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 23)
Which of the following statements is true regarding the Receipts and Payments Account?
It shows the surplus or deficit for the year.
It is a record of cash transactions.
It shows the assets and liabilities of the organization.
It provides a detailed breakdown of all the organization's income.
Explanation
The Receipts and Payments Account is a cash book, which records cash receipts and payments, hence tracking cash transactions.
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