Which of the following is meaning of fund based accounting?
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Process of producing information for external use usually in the form of financial statements.
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Produces information primarily for internal use by the company's management.
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An accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments.
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Refers to the type of accounting information system used in the public sector.
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Accounting for the tax related matters.
Fund accounting is a system of accounting widely used in non-business entities, such as nonprofits, government agencies, churches, hospitals and colleges and universities. Fund accounting differs from traditional business accounting, which focuses on identifying how successful an entity has been at creating profits. Since nonprofits and governments are not designed to generate profits, an alternative accounting method gives them a more fitting approach to tracking and reporting their finances.