alleryR&P Account differs from I&E Account in that R&P:
AIncludes only revenue items
BShows surplus or deficit only
CIs prepared on accrual basis
DIncludes both capital and revenue
Answer & Solution
Correct answer: D. Includes both capital and revenue
1. R&P is essentially a cash summary, capturing both capital and revenue cash flows.
2. I&E is purely revenue in nature and follows accrual.
3. R&P starts and ends with cash balances; I&E does not.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.2 distinction_
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