Concept:For a non-profit making organisation, the net worth is called the accumulated fund, not capital.
Explanation:In a profit-making business, the excess of assets over liabilities is called capital.
However, in a non-profit making organisation, the same difference is known as the accumulated fund.
This fund represents the total resources built up over time from surpluses and donations.
It is calculated using the statement of affairs.
The relationship is:
Total Assets−Total Liabilities=Accumulated FundThis accumulated fund acts as the capital base for the organisation.
It increases when income exceeds expenditure and decreases when expenditure exceeds income.
Therefore, among the options given, accumulated funds correctly describe this amount.
Answer:D. accumulated funds