Identify the salient features of the Income and Expenditure account from the following:A. It is prepared on an accrual basis.B. It includes both revenue as well as capital items.C. It is prepared after taking into account the additional information regarding outstanding/prepaid expenses and depreciation etc.D. Its result is surplus or deficit.E. It is prepared with the help of the Receipts and Payments Account. Choose the correct answer from the options given below:

Let's assess the functional features of an Income and Expenditure Account:A is correct: It operates strictly on the accrual basis of accounting.B is incorrect: It records revenue items only; capital items are explicitly excluded and moved directly to the balance sheet.C is correct: Adjustments for outstanding items, prepayments, and non-cash items like depreciation are fully incorporated.D is correct: The balancing final figure reflects either a 'Surplus' or a 'Deficit'.E is correct: It utilizes raw transaction facts from the primary Receipts and Payments Account as its starting source document.Thus, A, C, D, and E are the true features.