Discuss (a) the similarities in accounting for profit-seeking and G&NP organizations, and (b) the unique aspects of accounting for G&NP organizations designed to help ensure compliance with budgeted spending limits.
(a)
Discuss the similarities in accounting for G&NP (Governmental and Non-profit) organizations and profit seeking organizations.
The following are the similarities in accounting for G&NP (Governmental and Non-profit) organizations and profit seeking organizations:
(b)
Discuss the unique aspect of accounting for G&NP (Governmental and Non-profit) organizations.
The unique aspect of G&NP organization are fund accounting and budgetary control techniques. Fund accounting is designed to separate funds based on the purpose they are used and it accounts their uses and balances. Budgetary control techniques help in controlling the over expended. It is the performance evaluator as it controls the amount of profit generated, statutory control, and helps in spending efficiently within the budget appropriation.