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

Question

Quizplus · Accepted Answer

The most commonly used basis of accounting for reporting the Statement of Activities and Changes in Net Assets is the accrual basis. This means that revenues are recognized when earned, regardless of when cash is received, and expenses are recognized when incurred, regardless of when cash is paid. This provides a more accurate picture of an organization's financial position and performance than the cash basis or modified accrual basis.

What Is the Basis of Accounting Used in Reporting the Statement