WAEC Accounting 2014 Paper

Concept:In a not-for-profit organization, the excess of expenditure over income is called a deficit.Explanation:When total income is less than total expenditure, the organization has spent more than it earned.This condition can be written as:$$\text{Total Income} < \text{Total Expenditure}$$The difference is calculated as:$$\text{Total Expenditure} - \text{Total Income}$$For a not-for-profit entity, this excess expenditure is not termed a loss or shortfall in accounting convention.It is known as a deficit.A surplus would occur only if income exceeded expenditure.Answer:Deficit (Option D)