WAEC Accounting 2018 Paper

Concept:In a not-for-profit organization, the net worth is called the accumulated fund.Explanation:Accumulated fund represents the surplus of assets over liabilities.It is calculated as:$$\text{Accumulated Fund} = \text{Total Assets} - \text{Total Liabilities}$$This fund accumulates from surpluses, donations, and other receipts of the organization.Unlike businesses, not-for-profit organizations do not have capital or profit; they use accumulated fund in their balance sheet.Answer:D. accumulated fund