[amp_mcq option1=”It begins with a credit balance” option2=”It is a Real A\/c” option3=”Only revenue items are recorded in it” option4=”The closing balance indicates profit or loss of the year” correct=”option4″]<\/p>\n
The correct answer is: D. The closing balance indicates profit or loss of the year<\/strong>.<\/p>\n A receipt and payment account is a financial statement that records all cash receipts and payments for a specific period of time. It is a temporary account that is used to prepare the income statement. The closing balance of the receipt and payment account is transferred to the income statement, where it is used to calculate the profit or loss for the year.<\/p>\n Option A is incorrect because a receipt and payment account does not begin with a credit balance. It begins with a debit balance, which represents the total cash on hand at the beginning of the period.<\/p>\n Option B is incorrect because a receipt and payment account is a nominal account, not a real account. Nominal accounts are used to record income and expenses, while real accounts are used to record assets, liabilities, and equity.<\/p>\n Option C is incorrect because a receipt and payment account records all cash receipts and payments, not just revenue items. Cash receipts include cash from sales, cash from investments, and cash from loans. Cash payments include cash for expenses, cash for purchases, and cash for dividends.<\/p>\n I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”It begins with a credit balance” option2=”It is a Real A\/c” option3=”Only revenue items are recorded in it” option4=”The closing balance indicates profit or loss of the year” correct=”option4″]<\/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-50941","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n