Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is t...

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When a non-profit making organization prepares accounts using the accruals basis of reporting, the statement that shows how well the organization is doing is the income and expenditure account. This account is used to record the organization's revenue earned and expenses incurred during a specific period, regardless of whether the cash has been received or paid. The income and expenditure account helps the organization to measure its financial performance by comparing the revenue generated with the expenses incurred. The resulting surplus or deficit is then transferred to the balance sheet as unrestricted funds. Therefore, the income and expenditure account is the statement that shows how well a non-profit making organization is doing over a given period.