Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Question
Chapter 1, Problem 1.8E
To determine
Identify the correct answer related to unique characteristic of government and nonprofit organizations.
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Students have asked these similar questions
Accounting purpose of Governmental and not-for-profit organizations are different from business organizations due to the following reasons EXCEPT:
a. Different purposes in society
O b. Financed by resource providers who do not expect benefits proportional to the resources they provide
c. Management has a special duty to be accountable for how resources are used in providing services
O d. Accountable to the stakeholders of an organization
A forprofit business has a focus on profit and loss and follows GAAP regulations A government entity follows GASB regulations A government entity will have focus on what is being done with the funds received and recommendations for improvement are usually not given Whereas a forprofit entity will be reviewed for how revenue is being recognized and if they follow GAPP regulations and recommendations are given on how to improve compliance with GAAP
The commercial business activities are governed by the market places then the government organizations activities are governed by___________
a.
Fund financial statements
b.
Governmentwide financial statement
c.
None of the options
d.
Appropriations and encumbrances
Chapter 1 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 1 - Discuss (a) the similarities in accounting for...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Contrast the terms expense and expenditure.Ch. 1 - It was noted in this chapter that most of the...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - In which of the following situations would the...Ch. 1 - Legally adopted budgets of governmental funds are...Ch. 1 - Which of the following statements is false? A fund...Ch. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - (Expenditures vs. Expenses) Family Services, a...Ch. 1 - (Statement of Revenues and ExpendituresWorksheet)...Ch. 1 - Prob. 2P
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- A primary distinction between the flow of resources through a business enterprise and through a governmental entity is that operations in a governmental entity consume resources and assets to a. produce goods and services to citizens entitled to receive them b. generate return on investment. c. generate net income. d. generate capital for future investments.arrow_forward12) Internal Service Funds differ from Enterprise Funds because Internal Service Funds A) are a proprietary fund. B) are intended to show a profit. C) charge for their services. D) provide goods and services primarily to other government agencies.arrow_forwardIn which one of the following organization's expenditures are driven mainly by the ability of the organization to raise revenues? a. Commercial business organisation b. None of the options c. Both government and commercial business organisations d. Government or not for profit organisationarrow_forward
- Scenario: Not-for-profit entities and state and local government organizations are small in comparison to the federal government. The federal government has many different segments that cross the boundaries of private and public sectors. All of these segments need accounting, and each needs to be accountable to the taxpayers who pay for them. The federal government also has individual corporations, such as the U.S. Postal Service, that are part of the federal government as separate businesses. These corporations receive sustenance from the services that they provide but are still supported by the federal government if the services do not generate enough funds. The U.S. Postal Service is a prime example of a corporation with continued losses that still operates. The federal government is responsible for the mail and ensures that everyone receives their mail. Even though the size of the federal government is massive, accounting, reporting, and analyzing are still a requirement. Just like…arrow_forwardWhich of the following is not a financial factor affecting the location decision? The availability of government grants and subsidies Government planning permissions Labour costs Sales revenue potentialarrow_forward3. Which of the following characteristics distinguishes a government or not-for-profit entity from a business? a. There is always a direct link between revenues generated and expenditures/expenses incurred. b. Capital assets are used to produce revenues and save costs. c. Revenues are always indicative of demand for goods and services. d. The mission of the entity may include goals other than maximizing profit.arrow_forward
- Describe 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_forwardGovernments often provide goods and services to citizens or other governmental units at a fee. These activities are accounted for in: a. the general fund b. governmental funds c. proprietary funds d. special revenue fundsarrow_forwardDescribe the primary characteristics for governmental and not-for-profit entities. How does this differ from the primary characteristics for business organizations? In your discussion, explain how budgetary accounting contributes to achieving budgetary control over revenues and expenditures for governmental entities and not-for-profit entities.arrow_forward
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