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WAEC Accounting 2019 Paper

Question : 5

Total: 45

ln a not-for-profit organization, the accumulated fund is

Solution:

Concept:

The accumulated fund is the capital of a not-for-profit organization.

It is calculated as total assets minus total liabilities.

Explanation:

\text{Total assets} = \text{Fixed assets} + \text{Current assets}

\text{Total liabilities} = \text{Long-term liabilities} + \text{Current liabilities}

\text{Accumulated fund} = \text{Total assets} - \text{Total liabilities}

So,

\text{Accumulated fund} = (\text{Fixed assets} + \text{Current assets}) - \text{Total liabilities}

This is the same as saying current assets plus fixed assets less total liabilities.

Answer:

A. current assets plus fixed assets less total liabilities

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