NABTEB Book Keeping 2015 Objective — Question 16

Question 16 of 40 from the National Business and Technical Examinations Board (NABTEB) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.

The excess of expenditure over income of a not-for-profit making organization would be

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

Explanation

An excess of expenditure over income represents a deficit, which is deducted from (reduces) the organization's accumulated fund.

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