Question

Which of the following is a difference between master budgets for nonprofit organizations and those for other companies? Nonprofit organizations begin their budgeting process with a budget showing the level of service to be provided Nonprofit organizations prepare budgets showing their anticipated funding Nonprofit organizations frequently provide services free of charge, thus having no traditional sales budget All of the above are differences

Answer 1

Answer is all of the above are differences

Companies operating for profit prepare master budget starting with sales and then preparing rest of the functional budget like production, manufacturing cost, operating cost, cash budget and finally financial statements –profit and loss account, balance sheet and cash flow statement.

But non profit organisations do not have these typical functional budgets. Non profit organisation renders service. The get contributions from various sources and they provide services in kind. Hence theses activities are part of the budgeting process. Hence answer is All of the above are differences.