Chapter 1, Problem 2Q

Please help with the following:   Review FASB Statement of Financial Accounting Concept No. 1, No. 4, and No. 8, as well as GASB Statement No. 1. Compare the financial reporting needs of the users of governmental, nonprofit, and for-profit entities. Identify a local government, nonprofit, and for-profit business in your community, and describe the resource providers/users for each type of organization. Explain the need for information for each resource provider/user group. Discuss how the objectives of the financial reporting listed for each type of organization meet these needs.

Distinguish between government and not-for-profit organizations from business entities and describe how the distinction affects their accounting processes.

The following questions concern the accounting principles and procedures applicable to a private not-for-profit entity. Write answers to each question.a. What is the difference between revenue and public support?b. What is the significance of the statement of functional expenses?c. What accounting process does a private charity use in connection with donated materials?                                    d. What is the difference in the two types of restricted net assets found in the financial records of a private not-for-profit organization?e. Under what conditions should the entity record donated services?f. What is the proper handling of costs associated with direct mail and other solicitations for money that also contain educational materials?g. A not-for-profit receives a painting. Under what conditions can this painting be judged as a work of art? If it meets the criteria for a work of art, how is the financial reporting of the entity affected?

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.

Respond to the following in a minimum of 175 words: Discuss the various types of business-type funds used in governmental units and provide an example of when each is appropriate. Include how monitoring and reporting of business-type funds is similar and how it differs from the same functions in a corporation.

Which of the following types of information would be included in total net assets in the statement of financial position for a not-for-profit organization?a. total current assets.b. long-term liabilities.c. types of individual funds the entity has.d. unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Define Not-for-Profit organizations. Explain what distinguishes governmental not-for-profit organizations from nongovernmental, not-for-profit organizations. Why is such a distinction necessary? Mention the objectives of financial reporting of not-for-profit organizations?

Explain the basic composition of financial statements produced for a private not-for-profit entity.

Differentiate accounting for government and not-for-profit organization from a business enterprise.