Question : Expenses paid in advance are:
Option 1: deducted from the expenses paid during the year
Option 2: shown in debit of Income and Expenditure Account
Option 3: added to the expenses paid during the year
Option 4: shown as a liability in the Balance Sheet
Correct Answer: deducted from the expenses paid during the year
Solution : Expenses that are paid in advance are related to the following years hence, they are deducted from the expenses paid for the current year. Hence, the correct option is 1.
Question : Specific Donation received by NPO are shown in the:
Question : Entrance/Admission Fee received by the NPO is:
Question : Subscription received for special events is
Question : Donations received for a special purpose:
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