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

Question

Quizplus · Accepted Answer

Most NPOs are nongovernmental in nature and are therefore subject to SFAS No. 116 on contributions and SFAS No. 117 on financial statement display. SFAS No. 117 neither requires nor precludes the use of fund accounting; however, many NPOs continue to voluntarily use fund accounting for internal management and accountability for restricted purposes, such as grants. The AICPA Audit and Accounting Guide on NPOs provides guidance for optional fund accounting.

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