Final answer:
Accounting departments in nonprofit organizations are responsible for accurate financial reporting, including statements of financial positions and activities which are crucial for maintaining tax-exempt status and stakeholder trust.
Step-by-step explanation:
The assertion that accounting departments do no report financial information about a nonprofit organization is not accurate. In fact, accounting departments play a crucial role in reporting and managing the financial affairs of nonprofit organizations. Reporting financial information in a nonprofit context is essential for several reasons, including ensuring accountability to donors, regulatory compliance, and enabling organizational planning and management. Proper financial reporting helps nonprofits to maintain their tax-exempt status and builds trust with stakeholders.
Accounting departments are responsible for preparing various financial statements such as the Statement of Financial Position, Statement of Activities, and Statement of Cash Flows. These reports provide insights into an organization's revenue, expenses, assets, liabilities, and overall financial health.
Moreover, nonprofits are bound by GAAP (Generally Accepted Accounting Principles) which dictate the standards for financial reporting. Hence, it is mandatory for accounting departments to report accurate financial information and ensure transparency and accountability.