JAMB Accounting 2015 Objective — Question 30

Question 30 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

A non-profit-making organization differs from a profit-making one in that

A. it does not earn income
B. proceeds from sales of shares form part of its income
C. all its income is committed
D. annual subscriptions and levies form parts of its incomeCorrect

Explanation

A distinguishing feature of a non-profit-making organization is that it imposes subscriptions and levies on its members as a source of income.

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