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FIN611 Advanced Financial Accounting GDB Spring 2021 Solution / Discussion

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1 The going concern concept applies to NPOs while preparing their financial Statements

2 An NPO should be permitted to pursue some profitable activities to help them achieve their objectives successfully.

3 Profit seeking activities help the organizations in the fulfillment of their core objectives because money is needed to carry out all the activities of NPOs

4 The profit of an NPO is different from a profit-seeking organization’s profit as the profit of profit-seeking organization is only for its owners while the profit of an NPO will for the betterment of society as a whole.

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