### Educational Table: Understanding Not-for-Profit (NFP) Financial DocumentsThis table provides an overview of the key financial reports that Not-for-Profit (NFP) organizations must produce, outlining their purpose, their for-profit equivalents, and the differences between NFP and for-profit statements.| NFP Document | Purpose of the Report | Similar to Which For-Profit Statement | Difference from For-Profit Statement ||------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------------------------------------------------------|| **Statement of Financial Position** | | | || | | | || **Statement of Activities** | | | || | | | || **Statement of Functional Expenses**| | | || | | | || **Statement of Cash Flows** | | | || | | | |#### Details of Each Report:1. **Statement of Financial Position**: - **Purpose of the Report**: Provides a snapshot of the organization’s financial condition at a specific point in time, including assets, liabilities, and net assets. - **Similar to Which For-Profit Statement**: Similar to the Balance Sheet in for-profit organizations. - **Difference from For-Profit Statement**: Focuses on net assets instead of shareholders' equity.2. **Statement of Activities**: - **Purpose of the Report**: Reports the revenues and expenses over a period of time, showing changes in net assets. - **Similar to Which For-Profit Statement**: Similar to the Income Statement in for-profit organizations. - **Difference from For-Profit Statement**: Emphasizes changes in net assets rather than net income or loss.3. **Statement of Functional Expenses**: - **Purpose of the Report**: Provides detailed information about the expenses incurred by the organization, categorized by function (e.g., programs, management, fundraising). - **Similar to Which For-Profit Statement**: No direct equivalent, but can be compared to the detailed expense breakdown in a for-profit's financial analysis. - **Difference from For-Profit Statement**: Focuses on functional areas specific to NFP operations.4. **Statement of Cash Flows**: - **Purpose of the Report**

Statement of financial position : It is one of the important financial statement, also known as…

Answered: NFP Document tement of Financial ition…

NFP Document tement of Financial ition tement of Activities Purpose of the Report Similar to Which For- Profit Statement Difference from For-Profit Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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### Educational Table: Understanding Not-for-Profit (NFP) Financial Documents

This table provides an overview of the key financial reports that Not-for-Profit (NFP) organizations must produce, outlining their purpose, their for-profit equivalents, and the differences between NFP and for-profit statements.

| NFP Document | Purpose of the Report | Similar to Which For-Profit Statement | Difference from For-Profit Statement |
|------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------------------------------------------------------|
| **Statement of Financial Position** | | | |
| | | | |
| **Statement of Activities** | | | |
| | | | |
| **Statement of Functional Expenses**| | | |
| | | | |
| **Statement of Cash Flows** | | | |
| | | | |

#### Details of Each Report:

1. **Statement of Financial Position**:
- **Purpose of the Report**: Provides a snapshot of the organization’s financial condition at a specific point in time, including assets, liabilities, and net assets.
- **Similar to Which For-Profit Statement**: Similar to the Balance Sheet in for-profit organizations.
- **Difference from For-Profit Statement**: Focuses on net assets instead of shareholders' equity.

2. **Statement of Activities**:
- **Purpose of the Report**: Reports the revenues and expenses over a period of time, showing changes in net assets.
- **Similar to Which For-Profit Statement**: Similar to the Income Statement in for-profit organizations.
- **Difference from For-Profit Statement**: Emphasizes changes in net assets rather than net income or loss.

3. **Statement of Functional Expenses**:
- **Purpose of the Report**: Provides detailed information about the expenses incurred by the organization, categorized by function (e.g., programs, management, fundraising).
- **Similar to Which For-Profit Statement**: No direct equivalent, but can be compared to the detailed expense breakdown in a for-profit's financial analysis.
- **Difference from For-Profit Statement**: Focuses on functional areas specific to NFP operations.

4. **Statement of Cash Flows**:
- **Purpose of the Report**

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