The correct answer is: C. Trading concerns
A receipts and payments account is a financial statement that shows the cash receipts and cash payments of a business for a specific period of time. It is prepared by all types of businesses, including trading concerns, manufacturing concerns, and non-trading concerns.
A trading concern is a business that buys goods and sells them for a profit. The main source of income for a trading concern is the sale of goods. The main expenses of a trading concern are the cost of goods sold, selling and distribution expenses, and administrative expenses.
A manufacturing concern is a business that produces goods and sells them for a profit. The main source of income for a manufacturing concern is the sale of goods. The main expenses of a manufacturing concern are the cost of goods sold, manufacturing expenses, and administrative expenses.
A non-trading concern is a business that does not buy or sell goods or services. The main source of income for a non-trading concern is fees, interest, and other income. The main expenses of a non-trading concern are salaries, rent, and other expenses.
The receipts and payments account is a simple financial statement that can be prepared by businesses of all sizes. It is a useful tool for tracking cash flow and for planning future cash needs.