100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
SOLUTION MANUAL For Government and Not-for-Profit Accounting: Concepts and Practices 9th Edition by Granof; Khumawala; Calabrese, Verified Chapters 1 - 17, Complete Newest Version$18.49
SOLUTION MANUAL For Government and Not-for-Profit Accounting: Concepts and Practices 9th Edition by Granof; Khumawala; Calabrese, Verified Chapters 1 - 17, Complete Newest Version
SOLUTION MANUAL For Government and Not-for-Profit Accounting: Concepts and Practices 9th Edition by Granof; Khumawala; Calabrese, Verified Chapters 1 - 17, Complete Newest Version
Solution Manual for Government And Not For Profit Accounting
oo oo oo oo oo oo oo oo
Concepts And Practices 9th Edition Michael H. Granof|Latest
oo oo oo oo oo oo oo oo
Updated Version 2024. A+
oo oo oo oo
https://www.stuvia.com/user/asolution
,Created By: A Solution oo oo oo
Chapter 1 oo
The Government and Not-For-Profit Environment
oo oo oo oo
Questions for Review and Discussion oo oo oo oo
1. The critical distinction between for-profit businesses and not-for-profits including
oo oo oo oo oo oo oo oo
oo governments is that businesses have profit as their main motive whereas the others have
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo service. A primary purpose of financial reporting is to report on an entity‘s accomplishments —
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo how well it achieved its objectives. Accordingly, the financial statements of businesses
oo oo oo oo oo oo oo oo oo oo oo
oo measure profitability, their key objective. Financial reports of governments and other not-for-
oo oo oo oo oo oo oo oo oo oo oo
profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore,
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo they should focus on other performance objectives, such as how well the organizations met
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo their service goals. In reality, however, the goal of reporting on how well they have achieved
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo such goals has proven difficult to attain and the financial reports have focused mainly on
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo financially- related data. oo oo
2. Governments and not-for-profits are ―governed‖ by the budget, whereas businesses are
oo oo oo oo oo oo oo oo oo oo
oo governed by the marketplace. The budget is the key political and fiscal document of
oo oo oo oo oo oo oo oo oo oo oo oo oo
o o governments and not-for-profits. It determines how an entity obtains its resources and how it
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo allocates them. It encapsulates most key decisions of consequence made by the organization. In
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo a government the budget is not merely a managerial document; it is the law.
oo oo oo oo oo oo oo oo oo oo oo oo oo
3. Owing to the significance of the budget, constituents want assurance that the
oo oo oo oo oo oo oo oo oo oo oo
entity achieves its revenue estimates and complies with its spending mandates. They
oo oo oo oo oo oo oo oo oo oo oo oo
oo expect the financial statements to report on how the budget was administered.
oo oo oo oo oo oo oo oo oo oo oo
4. Interperiod equity is the concept that taxpayers of today pay for the services that
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo they receive and not shift the payment burden to taxpayers of the future. Financial reporting
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo must indicate the extent to which interperiod equity has been achieved. Therefore, it must
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo determine
https://www.stuvia.com/user/asolution
,Created By: A Solution oo oo oo
and report upon the economic costs of the services performed (not merely the cash costs) and of
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo the taxpayers‘ contribution toward covering those costs.
oo oo oo oo oo oo
5. The matching concept may be less relevant for governments and not-for-profits than
oo oo oo oo oo oo oo oo oo oo oo
oo for businesses because there may be no connection between revenues generated and the
oo oo oo oo oo oo oo oo oo oo oo oo
oo quantity, quality or cost of services performed. An increase in the demand for, or cost of,
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo services provided by a homeless shelter would not necessarily result in an increase in the
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo amount of donations that it receives. Of course, governments and not- for-profits are
oo oo oo oo oo oo oo oo oo oo oo oo
oo concerned with measuring interperiod equity and for that purpose the matching concept may
oo oo oo oo oo oo oo oo oo oo oo oo
oo be very relevant.
oo oo
6. Governments must maintain an accounting system that assures that restricted oo oo oo oo oo oo oo oo oo
oo resources are not inadvertently expended for inappropriate purposes. Moreover, statement
oo oo oo oo oo oo oo oo oo
oo users may need separate information on the restricted resources by category of restriction and
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo the unrestricted
oo
resources. In practice, these requirements have led governments to adopt a system of ―fund‖
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo accounting and reporting. oo oo
7. Even governments within the same category may engage in different types of
oo oo oo oo oo oo oo oo oo oo oo
oo activities. For example, some cities operate a school system whereas others do not. Those
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo that are not within the same category may have relatively little in common. For example, a
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo state government shares few characteristics with a city.
oo oo oo oo oo oo oo
8. If a government has the power to tax, then it has command over, and access to,
oo oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo resources. Therefore, its fiscal well-being cannot be assessed merely by measuring the
oo oo oo oo oo oo oo oo oo oo oo
o o assets o o that o o it
―owns.‖ For o o o o example, o o the fiscal condition of a city should incorporate the
o o o o o o o o o o o o oo oo
oo wealth of the residents and businesses within the city, their earning capacity, and the city‘s
oo oo oo oo oo oo oo oo oo oo oo oo oo oo
oo willingness to exploit its tax base. oo oo oo oo oo
9. Many governments budget on a cash or near-cash basis. However, the cash basis of
oo oo oo oo oo oo oo oo oo oo oo oo oo
oo accounting does not provide adequate information with which to assess interperiod equity.
oo oo oo oo oo oo oo oo oo oo oo
https://www.stuvia.com/user/asolution
, Created By: A Solution
oo oo oo
oo Financial statements that satisfy the objective of reporting on interperiod equity may not
oo oo oo oo oo oo oo oo oo oo oo oo
oo satisfy that of reporting on budgetary compliance. Moreover, statements that report on either
oo oo oo oo oo oo oo oo oo oo oo oo
interperiod
oo
https://www.stuvia.com/user/asolution
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursestar1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
