- 1 Marks
Question
The excess of expenditure over income in a Not-for-Profit organization is:
A. Accumulated fund
B. Working capital
C. Deficit
D. Surplus
E. Accruals
Answer
Answer:
C. Deficit
Explanation:
In a not-for-profit organization, when expenditure exceeds income, the result is a deficit. This is the opposite of a surplus, which occurs when income exceeds expenditure.
- Tags: Deficit, Expenditure, Not-for-profit
- Level: Level 1
- Topic: Accounts of Not-for-Profit Entities
- Series: MAY 2016
- Uploader: Kwame Aikins