Cash Basis Accounting Assessment

Open, View, and/or
Download this Document

Total Length: 607 words ( 2 double-spaced pages)

Total Sources: 1

Page 1 of 2

Leadership & Responsibility

Chapter 27 covers the principal tax requirements for not-for-profit entities. There are several issues that affect not-for-profits, including tax status, filing requirements, state tax reporting issues, donor-advised funds and restrictions. Every organization needs to pass a test to become a charitable organization-based for tax purposes. This is to ensure that only charitable ventures receive tax exempt status, to avoid having for-profit entities defraud the American people. Private foundations are subject to different taxation than public charities, and these taxes include on sponsorship and unrelated business income, and also investment income. It is legal obligation for managers to understand the tax status of their organization and file/pay taxes according to the laws surrounding that status. Most charitable organizations also need to meet the conditions of that status, including the prohibition on lobbying and political activity.

E-commerce is an emerging field for charitable organizations, because it creates new means of raising funds, and with respect to earning income.

Stuck Writing Your "Cash Basis Accounting" Assessment?

View All Our Example Cash Basis Accounting Assessment

Have A Custom Example Essay Written

The IRS is currently working to update the legal framework for e-commerce endeavors or not-for-profit entities. The tax treatment of corporate sponsorships comes with strict guidance when it appears in online format, for example, so the ethical leader needs to understand this legal framework.

Exempt organizations still need to file an annual information return with the IRS, and private foundations have their own forms that they need to submit to the IRS as well. For organizations such as private foundations that need to pay taxes, there is an electronic filing option. The chapter goes into detail all of the elements of financial reporting for different types of non-for-profit entities, highlighting specific points of policy guidance along the way. The author makes a point to remind the reader that states usually have their own needs with respect to the information not-for-profit entities must provide to….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Cash Basis Vs. Accrual Accounting

flows and accrual accounting. There are advantages and disadvantages of both. Cash basis accounting is great for making sure that there are no cash flow problems, but it has the disadvantage of masking some of the items where the impact to the organization stretches over long periods of time, such as the 180 day credit or the 2 year insurance prepayment. In contrast, accrual accounting is accepted under GAAP, aligns items with the time period of the impact to the organization, even over multiple quarters and years. But accrual accounting has the disadvantage, especially for more vulnerable companies, of potentially portraying… Continue Reading...

Cash and Accrual Basis Accounting

is actually received regardless of when the invoice was issued. Expenses on the cash basis accounting method are recorded when they are paid out and not when they were invoiced. The cash basis method is mostly used for personal finances and by small businesses. A good example for illustrating the cash basis method is a company could perform some work in a given year and receive payment in the following year. Using the cash basis method, the company would not report or record the revenue in the year the work was done, but rather it would record the revenue in the year the… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Cash Basis Accounting" (2014, June 05) Retrieved July 2, 2025, from
https://www.aceyourpaper.com/essays/cash-basis-accounting-189695

Latest MLA Format (8th edition)

Copy Reference
"Cash Basis Accounting" 05 June 2014. Web.2 July. 2025. <
https://www.aceyourpaper.com/essays/cash-basis-accounting-189695>

Latest Chicago Format (16th edition)

Copy Reference
"Cash Basis Accounting", 05 June 2014, Accessed.2 July. 2025,
https://www.aceyourpaper.com/essays/cash-basis-accounting-189695
   

Open, View, and/or
Download this Document
order custom essay example