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WAEC Accounting 2021 Objective — Question 31

Question 31 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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Members of a not-for-profit making organization

  • A. earn dividend on their contributions
  • B. do not receive surplus at the end of the yearCorrect
  • C. are paid interest on their contributions
  • D. share profits according to their contributions

Explanation

Unlike profit-making organizations where profits are distributed to owners, in not-for-profit organizations the surpluses that stand as profit are not shared among members.

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