WAEC SSCE - Financial Accounting - 1999 (Objective)

Question 1 Report

In-not-profit-making organizations, accumulated fund is the name for

profit

loss

capital

current assets

Answer Details

In non-profit-making organizations, the accumulated fund is the name for the capital that is accumulated over time through surplus revenue, donations, grants, and other sources. It is similar to the retained earnings in for-profit organizations, but instead of being used to pay dividends or distribute profits to shareholders, it is used to fund future projects, initiatives, and activities of the non-profit organization. The accumulated fund is an important financial indicator of the financial stability and sustainability of a non-profit organization.

Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)






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