The correct answer is option 'C' - Income statement.

Explanation:
Non-profit organizations are entities that operate with the primary objective of providing services or benefits to the public. Their focus is not on generating profits, but rather on achieving their mission and serving the community.

Non-profit organizations prepare financial statements to report their financial activities and provide information about their financial position. The primary financial statements prepared by non-profit organizations include:

1. Income and Expenditure Account:
The income and expenditure account is a statement that summarizes the revenues earned and expenses incurred by the non-profit organization during a specific period. It is similar to the income statement prepared by for-profit organizations. The income and expenditure account shows the surplus or deficit for the period, which represents the excess of revenues over expenses or vice versa.

2. Balance Sheet:
The balance sheet is a statement that presents the financial position of the non-profit organization at a specific point in time. It provides information about the organization's assets, liabilities, and net assets. The balance sheet helps in assessing the financial stability and liquidity of the organization.

3. Receipt and Payment Account:
The receipt and payment account is a summary of cash receipts and payments made by the non-profit organization during a specific period. It records all cash inflows and outflows, including donations, membership fees, grants received, expenses paid, etc. The receipt and payment account helps in tracking the cash flow of the organization.

4. Income Statement:
The income statement is not prepared by non-profit organizations. Unlike for-profit organizations, non-profit organizations do not focus on measuring profitability. Instead, they emphasize reporting their financial activities and the impact of those activities on achieving their mission. Therefore, the income statement, which calculates the net income or loss, is not relevant for non-profit organizations.

In summary, non-profit organizations prepare income and expenditure accounts, balance sheets, and receipt and payment accounts to provide information about their financial activities and position. However, they do not prepare income statements as their primary objective is not to generate profits.