[amp_mcq option1=”Income and Expenditure Account” option2=”Assets side of the Balance Sheet” option3=”Liabilities side of the Balance Sheet” option4=”None of the above” correct=”option1″]<\/p>\n
The correct answer is: A. Income and Expenditure Account<\/strong>.<\/p>\n Donations received for a special purpose are considered income and should be recorded in the Income and Expenditure Account. The Income and Expenditure Account is a statement of income and expenses for a specific period of time, such as a year. It is used to show how much money was earned and how much money was spent during that time.<\/p>\n The Assets side of the Balance Sheet shows the resources that a company owns, such as cash, land, and equipment. The Liabilities side of the Balance Sheet shows the debts that a company owes, such as loans and accounts payable. Donations received for a special purpose are not considered assets or liabilities, so they are not recorded on the Balance Sheet.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Income and Expenditure Account” option2=”Assets side of the Balance Sheet” option3=”Liabilities side of the Balance Sheet” option4=”None of the above” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-46863","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n