Economics · Accounting

With respect to Receipts and Payments Accounts, which of the following statements is correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The sale of grass by a sports club should be treated as the sale of an asset.
2The Receipts and Payments Account for a non-profit organization follows the cash system of accounting.✓
3Transactions of both revenue and capital nature are recorded in the Income and Expenditure Account.
4The Receipts and Payments Account details the outstanding expenses for the year.

Correct answer

The Receipts and Payments Account for a non-profit organization follows the cash system of accounting.

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