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The capital of a non-profit organization is generally known as
- a)Cash fund
- b)Accumulated fund
- c)Equity
- d)Financial reserve
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The capital of a non-profit organization is generally known asa)Cash f...
Capital of a Non-Profit Organization
Non-profit organizations are those organizations that are formed for the betterment of society and not for profit-making purposes. The capital of a non-profit organization is known as accumulated fund. Let's understand the concept of accumulated fund in detail.
Accumulated Fund
Accumulated fund is the capital of a non-profit organization. It is the sum total of all the surplus generated by the organization over the years, minus the amount of any deficits incurred. In other words, it is the amount of money that a non-profit organization has accumulated over the years by earning more than it has spent.
Importance of Accumulated Fund
Accumulated fund is an important component of a non-profit organization's financial stability. It serves as a reserve fund that can be used to support the organization's activities in case of any financial crisis. It also provides a means of measuring the financial health of the organization.
Uses of Accumulated Fund
The accumulated fund of a non-profit organization can be used for various purposes such as:
1. To invest in new projects or programs
2. To support ongoing programs and activities
3. To pay off debts or loans
4. To meet unexpected or emergency expenses
Conclusion
In conclusion, accumulated fund is the capital of a non-profit organization. It is an important component of the organization's financial stability and serves as a reserve fund that can be used to support the organization's activities in case of any financial crisis.
Non-profit organizations are those organizations that are formed for the betterment of society and not for profit-making purposes. The capital of a non-profit organization is known as accumulated fund. Let's understand the concept of accumulated fund in detail.
Accumulated Fund
Accumulated fund is the capital of a non-profit organization. It is the sum total of all the surplus generated by the organization over the years, minus the amount of any deficits incurred. In other words, it is the amount of money that a non-profit organization has accumulated over the years by earning more than it has spent.
Importance of Accumulated Fund
Accumulated fund is an important component of a non-profit organization's financial stability. It serves as a reserve fund that can be used to support the organization's activities in case of any financial crisis. It also provides a means of measuring the financial health of the organization.
Uses of Accumulated Fund
The accumulated fund of a non-profit organization can be used for various purposes such as:
1. To invest in new projects or programs
2. To support ongoing programs and activities
3. To pay off debts or loans
4. To meet unexpected or emergency expenses
Conclusion
In conclusion, accumulated fund is the capital of a non-profit organization. It is an important component of the organization's financial stability and serves as a reserve fund that can be used to support the organization's activities in case of any financial crisis.
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Community Answer
The capital of a non-profit organization is generally known asa)Cash f...
The capital for a non-profit organisation is not funded by the owner and thus has to be mentioned as capital fund. This is because capital fund is that account which records all those transactions which are related to capital nature
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The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer?.
The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of a non-profit organization is generally known asa)Cash fundb)Accumulated fundc)Equityd)Financial reserveCorrect answer is option 'B'. Can you explain this answer?.
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