Question

Made differences between the financial statements of a non-profit and regular? Please use an example from each financial statement

Answer 1

NON PROFIT FINANCILA STATEMENT ARE

1.statement of finacial position

2. statement of activities

3.statement of cash flows

4. change in net assets

PROFIT FINACIAL STTEMENT ARE

1. balance sheet

2. profit and loss account

3. statement of owners equity

4.statement of cash flows

The financial reports between the accounting systems of for-profit versus nonprofit corporations generate also differ. A for-profit corporation keeps a balance sheet that reflects the assets the corporation owns, which can be distributed as retained earnings to shareholders. Meanwhile, a nonprofit keeps a statement of financial position, which reflects the assets on hand that can be used to further the mission of the organization. Likewise, a for-profit uses its accounting system to track net income, whereas a nonprofit tracks the excess of revenues over expenditures.

finanacial statement of profit firm is follows

financial statement of non profit organisation is