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IMPORTANCE OF ACCOUNTING TO NON – PROFIT MAKING ORGANIZATION



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IMPORTANCE OF ACCOUNTING TO NON – PROFIT MAKING ORGANIZATION



ABSTRACT

        This study is titled importance of Accounting to non profit making organization

 

       What profit accounting does for non profit oriented organization is to enable the management is measuring performance decision making and adequate planning in finding out some possible solutions to the numerous problems. In chapter one, it deals with introduction background of the study, statement of study purpose of study significance of study research questions etc

 

       Hence, proper accounting is required in non profit making organization in order to ascertain the indebtedness of the organization and also pinpoint ways by which settlements may be made

 

       Chapter two deals with the literature review, importance of accounting to non profit making organization, the effects of accounting to non profit making organization significance role of accounting to non profit making organization etc

 

       The researcher work ends in chapter three with summary, conclusions and recommendations.

 

TABLE OF CONTENTS

Title page———————————————           i

 

Approval page—————————————-           ii

 

Dedication——————————————–           iii

 

Acknowledgement————————————           iv

 

Abstract ———————————————-           vi

 

Table of contents————————————-           v

 

 

CHAPTER ONE

1.0  Introduction————————————-           1

 

1.1  Background of the study————————    1

 

1.2  Statement of the study————————–   6

 

1.3  Purpose of the study—————————–   7

 

1.4  Significance of the study————————-   7

 

1.5  Research questions——————————-  8

 

1.6  Hypothesis—————————————– 9

 

1.7  Scope of the study———————————       9

 

1.8  Limitations of the study—————————-       10

 

CHAPTER TWO

Literature review——————————–           11

2.1  The importance of accounting to non-profit

 

       making organization—————————–   14

 

The effects of accounting to non-profit

       making organization——————————  15

 

The significant role of accounting to non-profit

       making organization——————————  16

 

The role of accounting to non-profit   

       making organization——————————  22

 

The summary of the chapter———————  23

CHAPTER FIVE

Summary of findings—————————–   30

5.1  Conclusions—————————————  31

 

5.2Recommendation———————————

 

5.3 Suggestions for further study——————–    33

 

       Reference—————————————–  34

 

APPENDIX

 

CHAPTER ONE

 

1.0  INTRODUCTION

 

1.1  BACKGROUND OF THE STUDY

 

       American accounting Association defined Accounting as the process of identifying, measuring and communicating economic information to permit inform judgment and decisions by the users of the information. This information is presented system matically and accurately recorded financial report about an entity engage in economic activity to users of such report.

 

(Akeju, 2003, 2003; 29)

 

       In this study accounting is a systematic record measurement and economic process used to report on the financial activities of association not for profit making motive, not for profit organization as defined by Akeju (2002) ‘’ are those organization which are established not the objective of making profit and distributing such profit to their members in form of interest on capital in the business organization to pursue the objective of which the business is established for’’

 

       The name not for profit can be misleading because the impression that the business are not allowed to partake in profit making activities this is not such, the business are allowed under law to undertake any lawful business activities not against their constitution and use the net cash flow for which they are established therefore, it is possible that not for profit making organization undertake tracing activities which can bring profit to them but such profit is not to be distributed as a result to the members in form of interest or dividend.

 

       Organization that fall under non-profit motive include public and private organization which set up to promote art, culture, religion, science, social club and so not. Examples of them includes stride unions student unions, sports, religion, social clubs and so no. it is established by members of like minds do their welfare, they are required to be registered as an association under the companies and Allied matters Decree no 1 of 1990 as amended. They are intended for profit but they indulge in any activities that is profit oriented

 

The official of these organizations are elected mostly for their commitment than for their commitment than for the financial knowledge. Therefore, only the simplest records are maintained including a cash book periodically, the records are passed to the associations accountant who many prepare a receipt and payments account. If and expenditure account. Determines the accumulated fund and finally close it up by a balance sheet for the financially period.

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IMPORTANCE OF ACCOUNTING TO NON – PROFIT MAKING ORGANIZATION


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This study is titled importance of Accounting to non profit making organization What profit accounting does for non profit oriented organization is to enable the management is measuring performance decision making and adequate planning in finding out some possible solutions to the numerous problems. In chapter one, it deals with introduction background of the study, statement of study purpose of study significance of study research questions etc Hence, proper accounting is required in non profit making organization in order to ascertain the indebtedness of the organization and also pinpoint ways by which settlements may be made.. Click here for more

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