Under current accounting and reporting standards nongovernmental,not-for-profit organizations (NFPs)must utilize the fund accounting structure set forth in the AICPA Audit and Accounting Guide Not-for-Profit Entities.

Question

Quizplus · Accepted Answer

Most NFPs are nongovernmental in nature and are therefore subject to the FASB standards on contributions and on financial statement display. The FASB neither requires nor precludes the use of fund accounting; however, many NFPs continue to voluntarily use fund accounting for internal management and accountability for restricted purposes, such as grants. The AICPA Audit and Accounting Guide on NFPs provides guidance for optional fund accounting.

Under Current Accounting and Reporting Standards Nongovernmental,not-For-Profit Organizations (NFPs)must Utilize