Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 25)
When might a club or society need to make adjustments to its income and expenditure account?
To include all cash transactions.
To include all income earned.
To recognize all expenses incurred.
To match income and expenses to their respective periods.
Explanation
Adjustments such as accruals or prepayments are often needed to ensure income and expenditure are correctly matched to their respective accounting periods.
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