Question

(accounting for Not-for-profit organization) is this the chap l need the introduction plsss​

Answer 1

Not-for-Profit Organisations are organisations which are set up for the welfare of the society or for the promotion of art and culture in the society. These are usually set up as a charitable institution with the service motive. The trustees manage these organisations. The members of the organisation elect the trustees. The Not-for Profit Organisations raise funds from its members as well as from the general public meeting their objectives.

The main motive of these organisations is to provide service. However, they may earn profits in the due course. Generally, these organisations do not manufacture, purchase or sell goods or provide services. Thus, they do not need to prepare Trading and Profit and Loss A/c. They credit the funds received to the Capital Fund or General Fund A/c.

Answer 2

Answer:

Nonprofits use four main financial reporting statements: balance sheet, income statement, statement of cash flows and statement of functional expenses. Three of these are similar to common for-profit company statements, with the functiona

Explanation:

You can choose a cash-basis or an accrual accounting system for nonprofit organization. Cash-basis accounting is a system where you record expenses or income when you actually pay or receive them, not when the transaction takes place. For example, you run a nonprofit where members must pay dues