In a non-profit oriented organization, the excess of income over expenditure is

Assessment: WAEC SSCE - Financial Accounting - 1992 (Objective) Subject: Financial Accounting

Question 1 Report

In a non-profit oriented organization, the excess of income over expenditure is
Answer Details
In a non-profit oriented organization, the excess of income over expenditure is added to the accumulated fund. This means that any surplus or profit generated by the organization is not distributed to shareholders or owners, but rather reinvested back into the organization to support its mission and activities in the future. The accumulated fund is a reserve that represents the organization's net assets, and it grows over time as surpluses are added to it. This helps to ensure the long-term sustainability of the organization and its ability to continue to provide services or support to its beneficiaries.
Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)
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