Compare and Contrast the Culture, Mission, and Vision of Profit and Research Paper

Compare and Contrast the Culture, Mission, and Vision of Profit and Nonprofit Organizations - Research Paper Example In cash basis accounting method financial information is recorded according to real time cash flow. Again under the accrual basis system, revenue is recorded when it is earned rather that when the payment is received. Profitable organizations maintain their financial records by following a standard accounting system but this system may not be followed by a non profitable organization as their nature of work is different than the profitable organization. In this regard this can be said that both types of organization will never follow similar type of accounting method for the business activities. This report will compare and contrast the accounting methods which are applied in profitable and non profitable organization. The accountants of one profitable and one non profitable organization are providing the information about the accounting standard followed by those companies in their interview session. Here the profitable organization is Apple Inc which is an American multinational co mpany which manufactures computer software, consumer electronics, personal computers and online services. The example of non profitable organization is Virginia Community Capital, Inc. It is a nonprofit banking entity and community development financial institution. This organization provides innovative investment solutions and loan for economic developmental projects and affordable housing in the Commonwealth of Virginia. Huge differences can be observed in case of accounting system for nonprofit and profitable organization. In case of profitable organization this can be said that this kind of business has started for providing benefits to the business owners and shareholders of the company. For this reason profit is one of the major goals of these businesses and company has to pay tax on the amount of profit. But in case nonprofit organization this can be