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
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Question One: Definition of Income: Refers to amounts received or receivable. I.e. Earned conducting business and club income. E.g. Membership fees‚ sale of refreshments‚ donations‚ etc. Not sale of assets. Gain to club. Increase surplus. Answer: -membership fees -entrance fees -sale of refreshments -sale of uniforms Question Two: Definition of Expenditure: Refers to the amounts paid or payable. Normally incurred
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Profit vs. Not-for-Profit Organization A nonprofit organization is formed for the common good of the public. Nonprofit organizations are usually formed for some specific religious‚ charitable or educational purpose. A for-profit organization may be formed to conduct any number of lawful business activities. The primary reason to form a for-profit organization is to earn a profit for the owners of the company. Use of Profits Since a not-for-profit organization is formed to accomplish a specific
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Kiesha Canada Unit 2 IP 03/11/2012 United States Health System Strengths Professor Rodriguez Introduction For-profit hospitals provide a service to make a profit which is returned first to organizations and then to their shareholders. Non-profit hospitals exist first to provide a service and second to accumulate assets which are returned to the hospital ’s community in the form of additional services (Consumers Union‚ 1998). Johns Hopkins Hospital is non-profit healthcare organization that
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Non-Profit vs. For-Profit The main difference between non-profit and for profit healthcare organizations are; Non-profit hospitals don’t need to pay property‚ sales or income taxes and receive grants from the government and through donations. They were designed to provide discounted fees for service or no fee to those in the surrounding communities with limited to no funds for healthcare‚ basically the poor or those who fall within the guidelines of those below poverty level. The tax exemptions
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Comparing Not-For- Profit and For Profit Colleges Colleges and university have slowly become one of the stepping stones into the working world today. People go to colleges for higher education with the intention of earning degrees in which they can use in their respective fields. Some example degrees that people pursue are Medical‚ Law‚ Business‚ Accounting‚ and Science Degrees. Through the years the idea of college was that it was optional and it was a door for better life and job. However in
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Not for profit organization: A non profit organization (NPO) is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends. While not-for-profit organizations are permitted to generate surplus revenues‚ they must be retained by the organization for its self-preservation‚ expansion‚ or plans.[3] NPOs have controlling members or a board of directors. Many have paid staffs including management‚ while others employ unpaid volunteers and even
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Definition of Non-Profit Organizations Associations‚ charities‚ cooperatives‚ and other voluntary organizations formed to further cultural‚ educational‚ religious‚ professional‚ or public service objectives. Non-Profit Organization startup funding is provided by their members‚ trustees‚ or others who do not expect repayment‚ and who do not share in the organization’s profits or losses which are retained or absorbed. Approved‚ incorporated‚ or registered Non-Profit Organizations are usually granted
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Name __________________________________________________________ Chapter 2 – Quick Quiz 1 1. A(n) _______________ is an organized system of assumptions and principles that purports to explain a specified set of phenomena. a. theory c. operational definition b. hypothesis d. experiment 2. An ideal scientist should: a. not express skepticism of new ideas. c. not support falsifiable theories. b. rely on scientific intuition. d. be willing to make “risky predictions.” 3. An advantage
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Quiz Non Profits Name_____________________________________________ 1. FASB require the balance sheets of not-for-profits to display a) Net assets in four separate categories—unrestricted‚ temporarily restricted‚ permanently restricted‚ and restricted by creditors. b) Three separate funds—unrestricted‚ temporarily restricted‚ and permanently restricted net assets. c) Six totals—total assets‚ total liabilities‚ total net assets‚ total unrestricted net assets‚ total temporarily
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