Question

Objective Type Questions.
Answer in one sentence only.

What does ‘surplus’ mean?

Answer 1

Income and Expenditure Account is prepared as a part of final accounts of not-for- profit organisations. It is prepared to ascertain the results of operating activities of the business. All the incomes and expenses are recorded in the Income and Expenditure Account. If the income side exceeds the expenditure side, then it is recorded as surplus, whereas if the expenditure side exceeds the income side, it is recorded as deficit.