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Question

The capital of a non-profit organization is generally known as __________.

A
Equity
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B
Accumulated fund/Capital fund
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C
Cash fund
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D
Financial reserve
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Solution

The correct option is B Accumulated fund/Capital fund
The capital for a non-profit organisation is not funded by the owner and thus has to be mentioned as capital fund. This is because capital fund is that account which records all those transactions which are related to capital nature.

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