Nonprofit accounting differs from for-profit accounting in several key ways. Some of the key differences include: a) Purpose: Nonprofit organizations have a primary focus on fulfilling a mission or serving a cause, while for-profit organizations aim to generate profits for their owners or shareholders. b) Financial Reporting: Nonprofits are typically required to prepare financial statements such as the statement of activities, statement of financial position, and statement of cash flows, which provide information about the organization's financial health and its use of resources. For-profit organizations, on the other hand, prepare income statements, balance sheets, and cash flow statements. c) Revenue Sources: Nonprofits often rely on diverse revenue sources, such as donations, grants, and fundraising events, whereas for-profit organizations generate revenue primarily from the sale of goods or services.