WAEC Accounting 2022 Theory — Question 7

Model answer

(i) Accumulated Fund: the total accumulated surplus/capital of a not-for-profit-making organization, built up over time from surpluses of income over expenditure — it is the equivalent of 'capital' for such organizations. (ii) Statement of Affairs: a statement showing the assets and liabilities of a not-for-profit-making organization at a given date, used to determine its accumulated fund (equivalent to a balance sheet).