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Financial Management
Professor Leazes
March 3, 2016

National Association of Accountants

Did the association have a surplus or deficit for 2000? DEFICIT is $25,100

Should the amount of the deficit or surplus affect the decision to change the annual dues? The deficit of $25,100 in 2000 should result in the decision to raise the dues for 2001 based on the association agreement that each year should “stand on it’s own two feet.”

1. Due to the understanding that the Beckwith Foundation contributed $54,000 for the 2001 symposium, that money is to be designated for that event in 2001. Since $2,700 of that contribution was spent during 2000 for the preliminary planning of the 2001 symposium, that amount is reflected on the 2000 statement.

Judgment was made because the $54,000 (unearned earning) was contributed for a future activity and the equity will be realized in that period. $2,700 was accounted for on the 2000 budget because those monies were spent in that time period in preparation for the 2011 symposium and is considered an earned earning.

2. The $27,000 for the publishing system is not applied to the 2000 budget because it is considered a capital expense and should be listed in the balance sheet, not in the annual income statement.

3. Membership dues for 2000 are $255,100. $32,400 will be applied to 2001 regardless of their 2000 receipt. This judgment was decided because membership dues are recognized for the year in which they are paid regardless of when they are collected.

4. The membership directory cost was $23,200 for 2000 and 2001. Half of that fee, $11,600, is included in the $80,800 Printing and Mailing Publications listed on the 2000 statement. This judgment was decided based on the accounting periods involved.

5. Revenues for the association’s journal are listed as $$28,300 and not $31,000 for 2000. This

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