The City of Detroit, founded in 1701, and incorporated in 1806, is in Wayne County, State of Michigan. Detroit is on an international waterway, which connects by means of the St. Lawrence Seaway to seaports around the world. Existing as the largest city in the State of Michigan, Detroit is notorious for its tradition in automotive and is a colloquialism for the automobile industry in the United States. Detroit is also known for its popular music legacies, which residents celebrate in several familiar nicknames, Motor City, Motown or simply the “D.” In a city, whose population is likely at 951,270, Detroit is also known for its liquor distribution during the prohibition in 1920. Each year, government entities, such as the City of Detroit is required to compile a comprehensive annual financial report, or CAFR, complying with the governmental accounting standards board accounting requirements. Comprehensive annual financial reports are detailed presentations of an entities financial condition, reporting on annual activities and balances. This official statement also includes a letter of transmittal, manager’s discussion and analysis, and has four sections: Introduction, financial section, statistical section, and compliance section. This briefing will review and discuss the comparison of governmental accounting and profit financial accounting. This briefing will also detail how to understand governmental reporting and reporting entities. Last, this briefing will outline management discussion and analysis reports for the state of Michigan.
Comprehensive Annual Financial Report Briefing
Comparison of Accounting Practices
Business reports, to include financial reports often refer to the terms nonprofit or not-for-profit, profit, and for-profit to describe an entity classification. These terms are significant as they determine the types of accounting transaction and activities covering a...