Private NFP organizations report their financial results using what basis of accounting?

Question

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Private not-for-profit (NFP) organizations report their financial results using the full accrual basis of accounting. This method recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid. This approach provides a more accurate picture of an organization's financial position and activities over time.

Private NFP Organizations Report Their Financial Results Using What Basis