Cima C02 Exam Question No 1

Question No 1:

The difference between an income statement and an income and expenditure account is that:

A. An income and expenditure account is an international term for an Income statement.
B. An income statement is prepared for a business and an income and expenditure account is prepared for a not-for-profit making organization.
C. An income statement is prepared on an accruals basis and an income and expenditure account is prepared on a cash flow basis.
D. An income statement is prepared for a manufacturing business and an income and expenditure account is prepared for a non-manufacturing business.

Answer: B