Accounting on a(n) takes into account the money that a nonprofit has earned and is entitled to receive, as well as obligations for expenditures that it has not yet incurred.
A) cash basis
B) accrual basis
C) credit basis
D) multilevel basis

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes revenue and expenses when they are earned and incurred, regardless of when actual cash transactions occur. This method allows for a more accurate reflection of a nonprofit's financial position, including both money earned and money owed.

Accounting on A(n) Takes into Account the Money That a Nonprofit