Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 34)
Which of the following statements is TRUE regarding a 'Receipts and Payments Account'?
It follows the accruals concept.
It includes only cash transactions.
It calculates the organization's profit or loss.
It reflects the organization's net assets.
Explanation
The Receipts and Payments Account only records cash inflows and outflows, reflecting actual cash transactions.
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