What is the basis used in reporting the Statement of Activities and Changes in Net Assets?

Question

Quizplus · Accepted Answer

The Statement of Activities and Changes in Net Assets is prepared using the accrual basis of accounting. This basis recognizes revenues when earned, even if cash has not yet been received, and recognizes expenses when incurred, even if cash has not yet been paid. This ensures that the organization's financial statements provide a more accurate and complete picture of its financial performance and position.

What Is the Basis Used in Reporting the Statement of Activities