Question

Analyse the accounting system is a non-profit organization​

Answer 1

Answer:

Non-profit accounting refers to the recording and reporting of business transactions of a non-profit organization. Such an entity one that has no ownership interests and has an operating purpose other than to earn a profit. It also receives significant contributions from third parties that do not expect a return. Here are some highlights.

· Net assets take the place of equity in the balance sheet, since there are no investors to take an equity position

· Net assets are classified as with donor restrictions or without donor restrictions. Assets without donor restrictions can be used for any purpose.

· A non-profit exists for a certain program. You can view the revenues and expenses associated with each program

· Costs are assigned to the management and administration classification, with the intent being to keep costs as low as possible

· Financial statements of a non-profit are different as the statement of activities replaces income statement and statement of financial position replaces the balance sheet.

Explanation:

thank you❤

Answer 2

Answer:

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.