Question

what do you unterstand by fund-based accounting? ​

Answer 1

Answer:

Fund-based accounting, or fund accounting, is a system used by nonprofit organizations and government agencies to manage their money. Fund accounting differs in purpose from the system used in regular for-profit businesses because the goal is to maintain accountability and track how funding is used rather than monitor the profitability of a company. Whether associated with a nonprofit or a donor who contributes to a variety of charities, learning about fund accounting will help you understand the financial structure of these types of organizations.