Being that you are an inquisitive person and wish to add to your knowledge base, you ask your new accountant to teach you about fund accounting that is used in nonprofit financial accounting. Specifically, you asked her the following:
Explain how fund accounting principles for nonprofit organizations affect routine revenue type journal entries.
Do you think that nonprofits should continue to abide by the wishes of contributors who donated on the basis of a specific use of their donation, or, during tough economic times, should they ask these contributors to relax any restrictions they placed on the use of these funds?
For nonprofits, revenue is not typically from a marketplace transaction. That is, receiving a fee for service or a product. It is typically donations, fees, grants, or taxes. Generally is recorded in the period when the collection is expected so this is not full accrual-basis. Collections shortly after year ...
Your tutorial is 205 words and gives the general rule for non-profit revenue and indicates that donor's wishes must be honored and why.
Question about Government and Non-profit accounting
Statement of Financial Accounting Standards (SFAS) 116 and 117 Executive Summary
Write a one-page Executive Summary assessing the requirements of SFAS 116 and 117 and its impact on financial statements.
Be sure to properly cite all your sources.