Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 12, Problem 1Q
Are governments and not-for-profit organizations required to prepare budgets?
Expert Solution & Answer
To determine
Explain whether government and not-for-profit organization require preparing budgets.
Explanation of Solution
- As per budgetary control principle and GASB budgeting, government units are mandated to prepare annual budget.
- Governments which have legally implemented preparation of budget must make comparison for the General Fund and each major special revenue funds.
- Budgets for other governmental funds, proprietary funds, and fiduciary funds are not mandatory budgets. These budgets are prepared if required.
- On the other hand, it is not mandatory to prepare budgets for not-for profit organizations. But, while preparing budgets, these organizations follow same budgeting concepts like government units.
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Can you explain how budgetary accounting contributes to achieving budgetary control over revenues and expenditures for governmental entities and not-for-profit entities
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Chapter 12 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 12 - Are governments and not-for-profit organizations...Ch. 12 - What is the difference between two types of...Ch. 12 - Prob. 3QCh. 12 - Robert Bland suggested that tensions may exist...Ch. 12 - Identify some essential components of the annual...Ch. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - What are the three broad categories of service...Ch. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 14CCh. 12 - Budgets of government entities a. Are integrated...Ch. 12 - Which of the following statements regarding...Ch. 12 - Which of the following steps would not usually be...Ch. 12 - The budgeting principle in generally accepted...Ch. 12 - Prob. 16.5EPCh. 12 - An approach to budgeting that requires the very...Ch. 12 - Which of the following does not represent a...Ch. 12 - Prob. 16.8EPCh. 12 - Prob. 16.9EPCh. 12 - Prob. 16.10EPCh. 12 - Prob. 16.11EPCh. 12 - Which of the following is not one of the general...Ch. 12 - Prob. 16.13EPCh. 12 - The police chief of the Town of Meridian submitted...Ch. 12 - The City of Manhattan, Kansas, prepares an annual...Ch. 12 - The City of Ashcroft has produced a Service...Ch. 12 - Prob. 20EPCh. 12 - Prob. 21EPCh. 12 - The U.S. Office of Management and Budget (OMB)...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the financial budgets is the most important? Why?arrow_forwardWhich budget is the starting point in preparing financial budgets? the budgeted income statement the budgeted balance sheet the capital expense budget the cash receipts budgetarrow_forwardWhich of the following best defines the term budget? An excuse for a big legislative party A forecast for spending A forecast for revenue collection A plan for how to deal with problemsarrow_forward
- Discuss in long explaination how public sector budgets reflect accountability.... explainations and examplesarrow_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_forwardWhy are budgetary entries recorded in the individual funds of a state or local government?arrow_forward
- 1 . Discuss the significance of public sector budgets from the perspective of a government agency ..in more wordsarrow_forwardWhat is the role of the budgeting committee and its responsibilities?arrow_forwardWhat are the basic benefits and purposes of developing pro forma statements and a cash budget?arrow_forward
- Government organizations and not-for-profit organizations (NPOs) are largely governed by their budgets, not the marketplace. Consequently, the budget, not the financial statements, is the most significant financial document. Nonetheless, most financial reports do not present much detail on the budget. How can a budget be described as important, but comprise a small component of the governmental financial reports?arrow_forwardWhich basis of accounting should be used when preparing a budgetary comparison schedule (or statement) for a government's General Fund?arrow_forwardExplain the budgetary process providing practical examples. This is in terms of Government Accounting.arrow_forward
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