Financial Health of Lee College Essay

767 Words Sep 20th, 2011 4 Pages
Financial Health of Lee College
ACC 380
May 23, 2011

Obtaining regular health checkups is vital to our survival; these checkups are necessary to monitor, maintain and improve our health. Did you know that it is equally important to perform periodic checkups on your company? Financial statements are a key component that allows us to track a company’s overall health and progress.
Being able to prepare some of the financial statements for Lee College as well as completing the required readings and assignments from our text book, Essentials of Accounting for Governmental and Not-for-Profit Organizations, gave me the opportunity to analyze the data as it was being put together. It allowed me make educated decisions regarding the
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Upon completing the Statement of Revenues, Expenses, and other changes in Unrestricted Net Assets, I was able to finish up the required statements and draft the Statement of Changes in Net Assets. Once all statements were completed I was able to analyze the financial reports to find that Lee College appeared to be on the right track. Although the majority of the assets were tied up in permanently restricted accounts, Lee College was successfully able to cover the expenses of the college for the given period of time. Lee College did not appear to have an abundance of undistributed funds which shows their resources were being used wisely.
According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).
Throughout this class we were introduced to a number of financial statements, many of which I never knew existed. It was nice to see that the formatting of these newly introduced financial statements were consistent and had many similarities to the traditional accounting statements for profit seeking businesses. These financial statements flowed together much like the accounting statements I have been used to seeing. This similarity in turn allowed me to smoothly
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