Asked by Jalon Lipford on Apr 28, 2024
Verified
What are the objectives of accounting for a not-for-profit entity?
Not-for-Profit Entity
An organization that does not operate for the profit or personal gain of its members and is involved in activities for the benefit of the public or a specific community interest.
Accounting Objectives
The main goals of accounting, including providing financial information about a business to users like shareholders and creditors for decision making.
- Acquire knowledge about the core principles of accounting relevant to not-for-profit institutions, focusing on how revenues and expenses are recorded.
Verified Answer
CH
Carlos HazardMay 02, 2024
Final Answer :
The objectives of accounting for a not-for-profit entity are: (i) to provide contributors and potential contributors with a means of evaluating the use of resources by the entity; and (ii) to disclose how resources have been acquired, and how they have been used to accomplish the objectives of the entity.
Learning Objectives
- Acquire knowledge about the core principles of accounting relevant to not-for-profit institutions, focusing on how revenues and expenses are recorded.