accrual method, Accounting Basics

accrual method, Accounting Basics

accrual method, Accounting Basics
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?

Provide at least one resource to support your answer, using APA guidelines.