income and expenditure account

Definition:

the equivalent in an accounting entity that is not a business enterprise of a profit and loss account. An income and expenditure account shows how the excess of expenditure over income or surplus of income over expenditure is computed starting with income. In the Companies Act, any reference to a profit and loss account shall be taken in the case of a company not trading for profit as referring to its income and expenditure account. Also called ‘revenue account’. In America, called ‘income statement’.



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