Homework Week 1 Accounting

Decent Essays
1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served.

The source of revenue comes from net income, which comes from a sale of goods or services in
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For state and local governmental units: 1. GASB Statements and Interpretations, plus AICPA and FASB pronouncements if made applicable to state and local governments by a GASB Statement or Interpretation.

2. GASB Technical Bulletins, and the following pronouncements if specifically made applicable to state and local governments by the AICPA; AICPA Industry Audit and Accounting Guides and AICPA Statements of Position. 3. Consensus positions of the GASB Emerging Issues Task Force (not yet in existence) and AICPA Practice Bulletins if specifically made applicable to state and local governments by the AICPA.

4. "Q's and A's" published by the GASB staff, as well as industry practices widely recognized and prevalent.

5. Other accounting literature, including GASB Concepts Statements; pronouncements in categories (a) through (d) of the hierarchy for nongovernmental entities when not specifically made applicable to state and local governments; FASB Concepts Statements; FASAB Statements, Interpretations, and Technical Bulletins, AICPA Issues Papers; International Accounting Standards Committee Statements, pronouncements of other professional associations or regulatory agencies; AICPA Technical Practice Aids; and accounting textbooks, handbooks, or articles.

For the federal government and its agencies:

1. FASAB Statements and
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