The correct option is it contains only the items of revenue nature of the current accounting period only. Income and Expenditure: An Income and Expenditure Account is a complete breakdown of all income and expenses incurred by a non-profit organization over the course of a fiscal year. Characteristics of Income and Expenditure account:It is prepared by a not-for-profit organization. Only the revenue items of the current accounting period are recorded in this account. No capital item is included. It is based on the accrual basis of accounting. It is prepared the same way as a Profit and Loss account is prepared in a for-profit business entity. It is prepared by stringently following the double-entry system. All expenses are recorded on the Debit side and all revenues on the credit side of the Income & Expenditure Account.