ACCOUNTING FOR GOVERNMENTAL & NONPROFIT
18th Edition
ISBN: 9781260588583
Author: RECK
Publisher: MCG
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Question
Chapter 1, Problem 19.2EP
To determine
Identify the statement which stands true for both government and non-profit organization.
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Students have asked these similar questions
1) Which of the following is not true?
A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit.
B) A not-for-profit entity may be governmental or non-governmental.
C) A not-for-profit entity may possess ownership interests like a corporation.
D) A not-for-profit entity receives resources from resource providers who do not expect commensurate or proportionate pecuniary return.
In which one of the following organization's expenditures are driven mainly by the ability of the organization to raise revenues?
a.
Commercial business organisation
b.
None of the options
c.
Both government and commercial business organisations
d.
Government or not for profit organisation
A forprofit business has a focus on profit and loss and follows GAAP regulations A government entity follows GASB regulations A government entity will have focus on what is being done with the funds received and recommendations for improvement are usually not given Whereas a forprofit entity will be reviewed for how revenue is being recognized and if they follow GAPP regulations and recommendations are given on how to improve compliance with GAAP
Chapter 1 Solutions
ACCOUNTING FOR GOVERNMENTAL & NONPROFIT
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Explain the meaning and significance of...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - What are the three sections of a comprehensive...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11CCh. 1 - Prob. 12CCh. 1 - Prob. 13CCh. 1 - Prob. 14CCh. 1 - Prob. 16CCh. 1 - Prob. 18EPCh. 1 - Prob. 19.1EPCh. 1 - Prob. 19.2EPCh. 1 - Prob. 19.3EPCh. 1 - Prob. 19.4EPCh. 1 - Prob. 19.5EPCh. 1 - Prob. 19.6EPCh. 1 - Prob. 19.7EPCh. 1 - Prob. 19.8EPCh. 1 - Prob. 19.9EPCh. 1 - The primary reason that not-for-profit (NFP)...Ch. 1 - Matching. (LO1-1, LO1-2, LO1-4, LO1-5) For each...Ch. 1 - Prob. 21EP
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Similar questions
- Which of the following accounting rules apply to all not-for-profit organizations? (Select all that apply.) The financial statements must include a statement of functional expenses The balance sheet must segregate assets according to restrictions on their use. The balance sheet must segregate current assets from long-term assets. The balance sheet must show reserves for likely amount of bad debts. Equipment must be reported net of accumulated depreciation. The activity statement must report expenses as decreases in net assets with donor restrictions. The activity statement must segregate revenues according to restrictions on their use.arrow_forwardDescribe how monies received by an organization functioning as an agent, trustee, or intermediary, rather than as a donor or donee, are accounted for. What may be the rationale for the discrepancies?arrow_forwardA characteristic common to governments and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent. True or Falsearrow_forward
- If a reporting entity has a choice of either expensing or capitalizing an item of expenditure, and if the entity is subject to a high degree of political scrutiny, then what choice would be predicted by the political cost hypothesis of Positive Accounting Theory? Explain your answerarrow_forwardIs there a difference between a balance sheet of a profit organization with a non-profit organization?arrow_forwardWhat are the main differences in accounting for profit and not for profit organizations?arrow_forward
- 1.The IASB sets standards for: a. The private sector b. The public and private sectors c.The public, private and not-for-profit sector d. The private and not-for-profit sector 2. Which of these is not one of the benefits of a Conceptual framework? a. Reporting requirements will be more Consistent and logical b. It may allow firms to reduce their reported profit c. The need for specific accounting standards should be reduced d. Standard setting boards will be more accountable for their actionsarrow_forwardA primary distinction between the flow of resources through a business enterprise and through a governmental entity is that operations in a governmental entity consume resources and assets to a. produce goods and services to citizens entitled to receive them b. generate return on investment. c. generate net income. d. generate capital for future investments.arrow_forwardYou are required to discuss and explain your opinion whether the following statement iscorrect:“The financial performance of Governments and Not-for profit organizations is as importantas the financial importance of Corporations as the amount invested in any project need togrow by generating return, otherwise they are spent with no real reason and recklessly”.You are highly advised to disclose in your essay what the main differences are betweencorporations and Governments and Not-for profit organizations, especially in terms of theirnature and how the performance is assessed in each case, by mentioning their general goalsand scope. By doing so, it will be easier to explain your answer whether profitability andfinancial performance of Governments and Not-for profit organizations is as important it is forthe case of companies.arrow_forward
- Which of the following is true regarding a not-for-profit organization’s reporting of gains and losses on investments purchased with permanently restricted assets?a. gains and losses can only be reported net of expenses in the statement of activities.b. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in unrestricted net assets.c. gains may not be netted against losses in the statement of activities.d. unless explicitly restricted by donor or law, gains and losses should be reported in the statement of activities as increases or decreases in permanently restricted net assets.arrow_forwardDescribe the primary characteristics for governmental and not-for-profit entities. How does this differ from the primary characteristics for business organizations? Can you explain how budgetary accounting contributes to achieving budgetary control over revenues and expenditures for governmental entities and not-for-profit entities pleasearrow_forwardGovernments may be distinguished from not-for-profit organizations by: Absence of profit motive The power to enact and enforce a tax levy Resource providers do not expect benefits proportional to the resources provided Absence of a defined ownership interest that can be sold, transferred, or redeemedarrow_forward
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