A difference in reporting on the balance sheet for a for profit business and a Not for profit entity is that current assets and current liabilities are reported in the for profit sector and the parallel accounts in not for profit are found in:

Question

Quizplus · Accepted Answer

Not-for-profit entities use fund accounting, which classifies assets and liabilities according to restrictions placed on them by donors or external regulations. Therefore, current assets and liabilities are not reported separately on the balance sheet, but instead are classified within different fund categories. Deferred accounts, donations, and net assets are all components of not-for-profit accounting, but they do not relate specifically to the reporting of current assets and liabilities on the balance sheet.

A Difference in Reporting on the Balance Sheet for a for Profit