JAMB Accounting 2010 Objective — Question 30

Question 30 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

In the not-for-not-for-profit-making organization, the excess of income over expenditure is

A. deducted from the capital
B. added to the accumulated fundCorrect
C. added to the capital
D. deducted from the accumulated fund

Explanation

The excess of income over expenditure is the equivalent of net profit in a profit-making organization; the accumulated fund is the equivalent of capital, so the excess is added to it.

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