HSM 260 Week 2 Checkpoint

Answer the 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?