...Governmental and Nonprofit Accounting: Theory and Practice, 10e (Freeman) Chapter 1 Governmental and Nonprofit Accounting—Environment and Characteristics 1. Which of the following would not be considered a government or nonprofit organization? A. A software company that sells software exclusively to state and local governments. B. A public elementary school. C. A church. D. A private trust organized for charitable purposes. (Answer: A; Easy; LO1) 2. Which of the following activities would most likely be accounted for as a business-type activity? A. Fire protection. B. Recreation. C. Water operations. D. Street maintenance. (Answer: C; Moderate; LO1) 3. Prior to the creation of the Governmental Accounting Standards Board in 1984, which of the following organizations had the greatest influence over accounting concepts, principles, and standards for the state and local governments? A. The National Council on Governmental Accounting (NCGA) B. The National Association of College and University Business Officers (NACUBO). C. The American Institute of Certified Public Accountants (AICPA). D. The Comptroller General of the United States. (Answer: A; Moderate; LO1) 4. Which of the following is considered a health and welfare organization? A. Secondary schools. B. Young Men’s Christian Association (YMCA). C. Child protection agencies. D. United Way. (Answer: C; Easy; LO2) 5. Which of the...
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...CALIFORNIA STATE UNIVERSITY, DOMINGUEZ HILLS School of Business and Public Administration GOVERNMENTAL AND NONPROFIT ACCOUNTING-ACC 431 FALL 2014 Section 01, T 7-945 PM (SBS G126) Dr. Reza Mazhin Office: SBS C-302 Telephone: (310) 243-3576 Email: RMAZHIN@CSUDH.EDU Hours: T/TH: 430-530 PM Other times by appointment Catalog Description And Prerequisite: Prerequisite: ACC230 The course covers the nature of fund accounting system used by governments and nonprofit entities. Topics include principles underlying fund accounting, budgeting procedures, and discussion of types of funds used. Course requirements include a term project. Required Textbook: Reck, Lowensohn and Wilson, Accounting for Governmental and Nonprofit Entities, 16th Edition. Student Learning Objectives and Course Explanation and Policies: 1. Objectives of the Course For purposes of study and practice, the discipline of accounting is commonly divided into the following areas financial accounting, managerial accounting, tax accounting, and governmental/nonprofit or fund accounting. This course concentrates on fund accounting. Financial accounting has been characterized as the branch of accounting that focuses on the general-purpose reports on financial position and results of operations known as financial statements. These statements provide a continual history quantified in money terms of economic resources and obligations...
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...CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that for a similar private business (e.g., electric utility). b. Among the unique aspects of G&NP organization accounting are: 1. Fund accounting—designed to separate resources according to the purposes for which they may be used and to account for their uses and balances. 2. Budgetary control techniques—to help assure appropriations are not overexpended and all resources due the G&NP organization are received by it. Question 1-2 a. A fund of a government organization is an independent fiscal and accounting entity. Each fund has a separate self-balancing set of accounts in which are recorded the resources segregated for specific purposes, the related liabilities and residual equity (fund balance or net assets), and the changes therein. Financial statements typically must be presented to report the financial position and operating activities of a fund of a government. b. As the term is generally used in commercial accounting, a "fund" merely indicates that a portion...
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...Managerial Accounting There are many common ownership forms that are available to form a health care organization. So when asked to advise fifty doctors on what common ownerships forms there are you must first think of what organization of health care you plan to open. Working on the capacity as an external consultant in the field is common to give guidance and provide feedback to any ideas that can help improve the way to do things. To have a better outlook on how things can be done 50 doctors have gathered together to come up with ideas on developing ownership form for their organization. The job is to oversee the ideas and ensure them that the ideas they are coming up with are practical ideas that shows a good understanding of the various common ownership forms that they can use as well as give them a detail briefing of the common ones they shouldn’t use. There are four main types of organizations they are Not for profit business oriented organizations, for profit health entities which include Investors owned, professional corporations/ professional associations, sole proprietorships, limited partnerships and limited liability partnerships and limited liability companies. Governmental HCOs and Non-governmental nonprofit HCOs. These four main types of firms differ in terms of ownership structures. They are different HCOs that require slightly different sets of financial statements. Health care organizations are either for profit, nonprofit and governmental organizations...
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...------------------------------------------------- 1) ------------------------------------------------- G & NP organizations exist because a community or society decides to provide certain goods or services to its group as a whole. Explain the general and major characteristics that differentiate G&NP organizations from profit-seeking entities? ------------------------------------------------- ------------------------------------------------- Suggested Solution ------------------------------------------------- Generally governments provide goods and services to the public regardless of whether the costs incurred will be recovered through charges for the goods and services or whether those paying for the goods and services will benefit from them. Also, some services cannot be provided by public entities, like infrastructure projects. ------------------------------------------------- ------------------------------------------------- The similarities of government and nonprofit (or not-for-profit) organizations and profit-seeking (or for-profit) organizations: a. ------------------------------------------------- Both types of entities operate in the same economy and use the same financial, human and capital resources to accomplish their goals. b. ------------------------------------------------- Both must get and convert scarce resources to produce goods and services. c. ------------------------------------------------- Both use information...
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...Generally Accepted Accounting Principles Introduction In the past, the financial statements of health care organizations’ were fairly easy to compare. Historically, members of the healthcare community had applied similar sets of accounting rules without regard to their business structure. This meant that whether an organization was a for-profit, nonprofit, or a government owned, every healthcare entity was considered to be in the same industry and the accounting procedures they were forced to follow were similar, thus increasing the level of comparability between organizations. However, today’s standard setting environment requires these similar organizations to apply different sets of accounting standards based of their business model. Resulting in similar transactions being accounted for differently and reducing the level of comparability between financial statements. This has led to the need and implementations of Generally Accepted Accounting Principles. Generally Accepted Accounting Principles, or GAAP, are a framework of accounting standards, rules and procedures defined by the professional accounting industry, which have been adopted by nearly all publicly traded companies in the United States, and allow for the recording and reporting of financial information in a uniform manner (Investing Answers, 2015). The benefit to companies using GAAP is that it makes it easier to compare the financial statements of different companies. GAAP aids in health care to establish...
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...The financial structures of health care entities non-profit, for-profit and government are different with funding, ownership, and type of services rendered. Financial managers, financial markets, and investors are the essential components that make up the financial world within a healthcare organization. Financial managers basically rely on investors to supply money through the financial markets when determining whether to use debt or use equity financing. To understand the full benefit of the financial resources, it is important to understand the overall financial structure. In other words how it is set up. In this paper, I will try to compare the financial environment of for-profit Pruitt Health Clinic, not-for-profit Phoebe Memorial Hospital, and VA Clinics. (to the best of my ability) In the health care sector entities regardless of their status (for-profit, not-for-profit, or government owned) should have the same common goal of providing quality healthcare to the residents of its community. Health care organizations are very different compared to other business when it comes to finances. The financial structure is described as the way funds are financed and the balance sheet shows what the organization looks like at a particular point in time. For example Phoebe Putney Memorial Hospital will compare fiscal year to another fiscal year to decide what needs to stay, go or be “tweaked”. Some organizations have a method to reading the spread sheet as well. PPMH for...
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...Comparing the Financial Environments Yvonne Young Tricia Jenkins HCS/577 July 20 2015 Comparative Summary For Profit Organization, Not for Profit Organization, Government Organization Home Health Doctors without Borders, World Health Organization Financial structure * For profit organization (Home Health) 1. Combining profitable business with meaningful opportunities helping clients maintain quality of life. Contribution of staff and how well the operation of business is performed and the efficiency, and the effectiveness of services needed to patients reliability of assistance and their autonomy. 2. Announcing budget by identifying the employees receiving budget information determine employees such as managers to be aware of budget announcement choosing dates for groups to receive budgetary information. 3. Write overview of the budget illustrating Major changes from previous budget Incorporate a list of action points needed to perform 4. Compile a packet for employees including Action list Budget 5. Send out emails notifications and memos based on the home health organization announcing the release of budget information 6. Gather for meeting with employees dispersing information and schedule accordingly. * Not for Profit Organization (Doctors without Borders) 1. Fundraising and administrative cost with independency of growth through individuals and investments...
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...Lisandra Rodriguez Acc.410 HW#1 Chapter 1 Q1-5 Funds are separate fiscal and accounting entities and include both cash and non cash resources. There are two types of fund accounting entities expendable and nonexpendable funds. Like that on business accounting is expenses – the cost of assets consumed during the period. In contrast, the cost of measurement focus of expendable fund accounting is expenditures – the amount of financial resources expended during the period for. Q1-6 The GASB is responsible for establishing accounting and financial reporting standards for activities and transactions of state and local governments including government non-profit organizations. Meanwhile FASB is for all other organizations including nongovernment nonprofit organizations. Then we have AICPA that evaluates the pronouncements of the various G&NP accounting standards bodies in depth in the course of preparing a series audit guidelines. Q1-7 Because significant revenues from sales of services are not available to finance governmental type activities, the government must raise financial resources from other sources such as Taxation and intergovernmental revenues. These are the two primary examples of these revenues. Q1-8 Because the day to day accounting and interim reporting by G&NP organizations is often based on cash receipts, disbursements, and balances or assuring compliance with the organization’s budget. But their annual financial statements must meet uniform national...
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...2014-17 November 2014 Business Combinations (Topic 805) Pushdown Accounting a consensus of the FASB Emerging Issues Task Force An Amendment of the FASB Accounting Standards Codification® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. For additional copies of this Accounting Standards Update and information on applicable prices and discount rates contact: Order Department Financial Accounting Standards Board 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 Please ask for our Product Code No. ASU2014-17. FINANCIAL ACCOUNTING SERIES (ISSN 0885-9051) is published quarterly by the Financial Accounting Foundation. Periodicals postage paid at Norwalk, CT and at additional mailing offices. The full subscription rate is $242 per year. POSTMASTER: Send address changes to Financial Accounting Standards Board, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116. | No. 406 Copyright © 2014 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or...
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...Public Budgeting-Revenue Sources Tammy E Bushman, BS, BHT, CRSS ACC/574 Public Budgeting August 24th, 2015 Lana Salomonson Public Budgeting-Revenue Sources Three revenue sources in public budgeting Charges for services: Charges for services are described as consumer charges and additional fees that derive from governmental and business endeavors. Such charges for governmental activities include elements such as licenses, permits, fines, forfeits, and for performing or running distinctive assessments that are frequently charged for services supported outside the typical service area or beyond the bounds of the normal degree of services. Additional governmental service fees that are included in the “Charges for Services” category include matters such as incarceration of prisoners (Wilson, Kattelus, & Reck, 2007). These types of charges also encompass miscellaneous services rendered inside the states. These various charges consist of document fees, court-filling fees, and park entrance fees. It also suggests any government that acquires, uses, or benefits from goods and services provided. A charge for services is a specific type of fee that is charged to compensate for services related to the basic service or product essentially purchased. Services fees are referred to as countless names dependent on the trade or industry. These charges are frequently imposed when human interaction between a company and consumer is involved ("Invostopedia", 2015). Property Tax: ...
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...an organization combines the fundraising function with another function - usually some type of program activity, such as public education ("Joint Cost Allocation | Nonprofit Accounting Basics," n.d.). There are three criteria that must be met in order for a non-for profit organization; Purpose, audience, and content. The purpose indicates the reason for doing the activity. The question that must be answered is: Does the purpose of the activity meet the accomplishment of a program function? As described by the AICPA Statement of Position 98-2, the audience helps determine whether or not the activity is solely a fundraising activity - Did the activity target mostly rich people, or prior donors? If so, there is a presumption that it is primarily a fundraising activity. The third criterion that should be met when determining joint costs for multi-purpose activities is content. For example - Is the content of the activity genuinely program-oriented? Generally, the joint activity needs to ask the audience to take a specific action that will help accomplish the NFP’s mission (Reck, Lowensohn, Wilson, & Wilson, 2013, p. 557). Below are three different scenarios in which I will determine whether or not the purpose, audience, and content criteria has been met as described in Chapter 13 of the AICPA, Audit and Accounting Guide. I will provide my reasoning for each scenario. Scenario #1 The Green Group’s mission is to protect the environment by increasing the portion of waste recycled...
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...Types of Audits KWyrick Advanced Accounting 2/23/15 Audits are an important necessity to insure the foundation and integrity of any company in today’s business world. Audits provide credibility and assurance for the company’s management and financials. This is useful information for stakeholders when deciding whether or not to invest in the company. The audit also provides reasonable assurance that the financials are free from material errors. Therefore the information provided is guaranteed to be honest and truthful. It is also important for some companies, such as nonprofits to have an audit performed. This provides regulations by the government to make sure that people are following the rules and not being taken advantage of. Other benefits of audits include uncovering or preventing fraud. If someone has been hiding financial information or trying to improve the financial status of the company wrongfully, it will usually be uncovered by the auditors. The three types of audits from the text include operational, compliance, and financial statement audit. These three audits work to solve different things. An operation audit reviews operations and looks for ways to improve efficiency and effectiveness. Compliance audits review contracts and agreements to make sure that all parties are doing their part or performing the tasks required. This is more common in nonprofits or governmental entities because one party is funding the other for a service. Financial statements audits...
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...spending it also for the constituents. And the exact definition according to http://www.wisegeek.com/what-is-fiscal-administration.htm, fiscal administration is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions, nonprofit organizations, and other public service entities. Constituents charge leaders, whether governmental or organizational, with establishing fiscal policy as part of their duties in relation to responsible fiscal administration. Fiscal policies are tools for the development of fiscal planning budgets, based on the receipt of anticipated funding. As fund disbursement in the form of payroll, purchases, or other expenses occur, management reports appropriate accounting information back to organizational leaders. Historical data, future revenue projections, and current budget demands determine needed adjustments. The entire process forms the basis for future fiscal administration decision making. Leaders of government, nonprofits, and other public service entities have a fiduciary responsibility to those who put them in office, individuals better known as constituents. Effectively managing the fiscal administration of an entity contributes to its overall financial health and ability to continue serving constituents. As such, laws dictate much of the particulars with regard to preparing financial statements, recording transactions, and balancing budgetary demands for such organizations. Fiduciary responsibility...
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...Análisis de Estados Financieros e Indicadores de Gestión Revisión analítica de Corporación Interamericana de Entretenimiento, S.A.B. de C.V. Alumno: Sergio Iván Sánchez Pérez Matricula: 278450 Maestro: Dr. Enrique Flores Pérez 1. Review the meaning of the terms and concepts listed in Key Terms and Concepts. Balance sheet: Statement of financial position that shows Total Assets 5 Total Liabilities 1 Owners’ Equity. The balance sheet usually classifies Total Assets as (1) current assets, (2) investments, (3) property, plant, and equipment, or (4) intangible assets. The balance sheet accounts composing Total Liabilities usually appear under the headings Current Liabilities and Long-Term Liabilities. Income statement: The statement of revenues, expenses, gains, and losses for the period, ending with net income for the period. Accountants usually show the earnings-per-share amount on the income statement; the reconciliation of beginning and ending balances of retained earnings may also appear in a combined statement of income and retained earnings. See income from continuing operations, income from discontinued operations, extraordinary items, multiple step, and single-step. Statement of cash flows: A schedule of cash receipts and payments, classified by investing, financing, and operating activities; required by the FASB for all for-profit companies. Companies may report operating activities with either the direct method (which shows only receipts and payments...
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