Question

What are the objectives of accounting for a not-for-profit entity?

Answer 1

Objectives of accounting for a not-for-profit entity is shown as follows:-

1. To evaluate the performance of entities in terms of achieving their goals for which they were created.
2. To judge whether those entities are appropriating the funds economically, effectively and efficiently.
3. To examine the compliance of rules, regulations, bye-laws in the entities.
4. For obtaining grants from government departments.
5. To submit annual accounts to the Registrar with whom the entities are registered.