Question

What does a non-profit business call the income statement? Why?

Answer 1

Non profit business organisation will call the income statement as statement of financial activity.

Statement of financial activities will be reflecting the income and expenditure of the non profitable organisation for a specific period of time.

it is called income statement because it will reflect the changes to the net assets of the organisational through the generation of the income and expenditures .

it will be reflecting all the revenues which are earned by the non for profit organisation and contributions which are paid by the non for profit organisation that will be reflecting on to the net assets of the company and it would be reflected through statement of financial activity so it is treated like and income statement.