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 14, Problem 14.2EP
According to GAAP, all not-for-profit organizations are required to prepare only the following statements:
- a. A statement of activities, a statement of
cash flows , and a statement of functional expenses using accrual accounting. - b. A statement of activities, a balance sheet, and a statement of cash flows using accrual accounting.
- c. A
statement of financial position and a statement of activities using accrual accounting. - d. A statement of cash flows, a statement of activities, and a statement of financial position using either cash basis or accrual basis accounting.
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A cash flow statement is considered a major financial statement for a business and nonprofit entity.
Discuss the main purposes of a cash flow statement and how an entity uses the cash flow statement.
Discuss the major sections of a cash flow statement and identify which types of transactions are contained in each section.
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.
Is it true or not?
An entity shall prepare all its financial statements, except the statement for cash flow information, using the accrual basis of accounting.
Chapter 14 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - What is the value of reporting expenses by...Ch. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - What criteria must be met before an NFP...Ch. 14 - Prob. 8QCh. 14 - What are joint costs, and how are joint costs...Ch. 14 - Prob. 10Q
Ch. 14 - Prob. 11CCh. 14 - Prob. 13CCh. 14 - Prob. 14.1EPCh. 14 - According to GAAP, all not-for-profit...Ch. 14 - Prob. 14.3EPCh. 14 - In a local NFP elementary schools statement of...Ch. 14 - Prob. 14.5EPCh. 14 - Prob. 14.6EPCh. 14 - The Maryville Cultural Center recently conducted a...Ch. 14 - Prob. 14.8EPCh. 14 - Prob. 14.9EPCh. 14 - Prob. 14.10EPCh. 14 - Prob. 14.11EPCh. 14 - Prob. 14.12EPCh. 14 - Prob. 14.13EPCh. 14 - Prob. 15EPCh. 14 - Donated Services. (LO14-3) Indicate whether each...Ch. 14 - Prob. 17EPCh. 14 - Prob. 18EPCh. 14 - Prob. 19EPCh. 14 - Statement of Activities. (LO14-3) The Atkins...Ch. 14 - Prob. 21EPCh. 14 - Prob. 22EPCh. 14 - Prob. 23EPCh. 14 - Prob. 24EPCh. 14 - Prob. 25EP
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- Financial statements are prepared under the accrual basis, because The accrual basis requires the recording of transactions in terms of debit and credit The accrual basis provides more complete information about an enterprise, compared to the cash basis of accounting. The accrual basis is the only basis used for income tax purposes. The accrual basis considers the timing of the cash inflow and cash outflow in the recognition of income and expenses.arrow_forwardThe cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of revenue B. Recognition of expenditure C. Disclosure of non financial assets D. Notion of depreciation Please answer part A-Darrow_forwardThe objective of financial accounting information is to provide information about the business performance (Income Statement), financial position (Balance Sheet) and financial solvency (Cash Flows) to interested parties. Discuss the underlined items.arrow_forward
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