Treasurer's Cash Flow Summary for Sports Clubs

Steps:

• Identify the role: The treasurer tracks cash inflows and outflows for a non-profit like a sports club.
• Recall club accounting: Unlike businesses, clubs use cash-based accounts for simplicity.
• Match the description: The statement must summarize actual receipts and payments over the year.
• Eliminate mismatches: Rule out accrual-based or balance-focused statements.

Why C is correct:

• The receipts and payments account is defined as a cash-based summary of all monies received and paid out during the period, directly prepared by the treasurer for clubs.

Why the others are wrong:

• A reconciles bank records to internal books, not a yearly summary.
• B records income and expenses on an accrual basis, ignoring cash timing.
• D shows assets, liabilities, and equity at a point in time, not transactions.

Final answer: C