alleryIncome and Expenditure Account is prepared on:
ACash basis of accounting
BMixed basis as needed
CAccrual basis of accounting
DTax authority basis only
Answer & Solution
Correct answer: C. Accrual basis of accounting
1. I&E Account follows the accrual principle.
2. Only revenue items relating to the current period are included.
3. Adjustments are made for accrued and prepaid items.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3 ¶1_
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