All categories

3 years ago

The basis of accounting used by not-for-profit organizations in their external financial reports is

Business

1 answer:

beks73 [17]3 years ago

3 0

Answer:

The correct answer here is A) industry specific basis of accounting.

Explanation:

The term nonprofit accounting means a unique way of recording and reporting the business transactions which are taken up by the nonprofit organizations. There are various basis of accounting, which a non for profit organization can use like cash basis ( where income and expenses are recognized when they occurred , and this type of accounting is more suitable for smaller nonprofits organizations ) , accrual basis ( where income and expenses are recorded when they are earned not received ) , modified cash basis ( is a mixture of both cash and accrual basis of accounting ). But when a not for profit organization is preparing their external financial report, the basis of accounting would be industry specific.

You might be interested in

Judy acquired passive Activity A in January 2013 and Activity B in July 2014. Until 2018, Activity A was profitable. Activity A

Crazy boy [7]

Answer:

Judy may deduct $54,000 of the net losses.

Explanation:

2018 Passive Activity Limitations $39,500

Passive Income ($33,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $6,000

2019 Passive Activity Limitations $69,500

Passive Income ($21,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $48,000

$54,000 Suspended Passive Activity Limitations

7 0

3 years ago

A strong internal control system will reduce the amount of substantive testing that must be performed.A ) True B ) False

Doss [256]

Answer:

A) True

Explanation:

The internal control structure deals with the rules, laws, procedures, practices that vary from company to company that are necessary to attain an organization's goals and objectives.

The substantive testing is an audit process aimed at checking the accuracy and reliability of the financial statements. To check if the financial statements are free from any errors, mistakes, fraud, etc. that can change users' decisions.

The financial statements should be relevant, reliable and finalize in all respects.

Therefore, a strong internal system will reduce the quantity of substantive testing required.

4 0

3 years ago

Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil

strojnjashka [21]

Answer:

$300,00

Explanation:

In a situation where the interest rate is said to be 10% the amount that Martin must provide in order to fund this bequest will therefore be:

Bequest first year $9,000/(Interest rate 10%-

Increase of 7 % per year)

Hence:

$9,000/0.03

=$300,000

Therefore $300,00 will be provided to fund the bequest

5 0

3 years ago

Select the correct answers.

Thepotemich [5.8K]

Answer:

the correct answers are,

safety
liquidity

Explanation:

saving money does not include much risk and is not affected by market volatility and prices. Most of the time, the savings' are guaranteed by the banks and governments through various securities.

Also, money in savings are easy to get back for your use!

3 0

3 years ago

Read 2 more answers

Suppose Frank owns a vintage Porsche in mint condition. He agrees to sell it to Smith, but the night before the parties are to e

Korvikt [17]

Answer:

This is a situation arising from objective impossibility.

Explanation:

The contract was made for mint condition of car. The car damaged while it was with Frank. Thus, parties are thus discharged from their obligations under the contract.

6 0

3 years ago

Read 2 more answers