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Basics of Accounting

Basics of Accounting


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Identify the importance of using the accrual method.


Apply balance statement principles to personal finances.


Accrual Method

Answerthe following questions in 200 to 300 words:


Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? Why is accrual accounting important?


In an accrual system, does revenue equal cash?


What is the importance of the statement of cash flow in the financial management of an organization?

Provideat least one resource to support your answer, using APA guidelines.

Postyour answer as a Microsoft®Word attachment to the Assignment Link.


Personal Balance Statement

Readthe background information provided in Appendix B.

Completethe personal balance statement template provided in Appendix C based on your understanding of the information in Appendix B.

Put your name on your sheet

Postyour Appendix C as a Microsoft®Excel attachment

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