Why do you think accountants came up with this concept of "fund accounting" for non for profit organizations? Why couldn't they just use the same accounting methods for corporations for governmental units, hospitals, colleges, or charities?

Why do you think accountants came up with this concept of "fund accounting" for non for profit organizations? Why couldn't they just use the same accounting methods for corporations for governmental units, hospitals, colleges, or charities?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 7Q: Use the internet to research one for-profit, one governmental, and one not-for-profit entity. For...

See similar textbooks

Related questions

Q: General accounting

A: Step 1: Define MarkupThe concept of markup, in business and economics, is the amount of money that…

Q: Oswego Clay Pipe Company sold $45,300 of pipe to Southeast Water District 45 on April 12 of the…

A: The terms of the transaction are 2/15, n/60. This means that the buyer, Southeast Water District 45,…

Q: Please help me I want answer

A: Explanation of Contribution Margin: Contribution margin is the difference between total sales…

Q: None

A: The question requires the determination of the quick ratio. The quick ratio is an indicator of a…

Q: Cianci accounting services had solve this accounting questions

A: Step 1: Define Gross IncomeGross income can be defined as the difference between sales and cost.…

Q: Please given answer financial accounting question

A: Step 1: Define TaxesTaxes are levies charged by the government on income, certain transactions,…

Q: PROBLEM 12-23 Close or Retain a Store [LO2] Thrifty Markets, Inc., operates three stores in a large…

A: 1. Revenues:The Downtown Store's sales revenue of $600,000 will be lost if the store…

Q: Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following…

A: Step 1: In variable costing, Variable expenses are subtracted from sales to get the Contribution…

Q: Please provide correct answer the accounting question

A: Step 1: Net sales.= sales - sales discounts - sales returns and allowances= $820,000 - $12,300 -…

Q: what is your answer? for this accounting question

A: Explanation of Attestation Depth: Attestation depth refers to the level of detail and thoroughness…

Q: help

A: Explanation of Standard Cost: Standard cost is a predetermined cost that represents what a product…

Q: What was the firm's 2015 operating cash flow, or OCF on these general accounting question?

A: Step 1: Define Net Capital SpendingNet capital spending is the amount of fixed asset expenditure…

Q: Subject = General Account

A: Step 1: Organize the dataHere is the provided data for each category:Inventory CategoryCost ($)Net…

Q: Financial Accounting Question please find the correct answer

A: Step 1: Introduction to time value of moneyTime value of money is a financial concept which is used…

Q: Do fast answer of this accounting questions

A: Step 1: Define Total AssetsThe total assets formula states that the amount of the total assets of a…

Q: Financial accounting

A: Step 1: Define Cash FlowsAnnual cash flows refer to the total amount of money generated or received…

Q: Help me please

A: The weighted average method combines beginning inventory costs and current costs, then spreads these…

Q: general account questions

A: Step 1: Variable costing Variable costing includes only the variable product costs which are direct…

Q: Theoretical Question: Describe the key elements of the matching principle in accounting, and analyze…

A: Key Definitions:Matching Principle: An accounting concept that states expenses should be recorded in…

Q: What are the nominal and effective solve this accounting questions

A: Explanation of Trade Credit TermsTrade credit terms describe the payment agreement between a buyer…

Q: I don't need ai answer accounting questions

A: Step 1: Calculate Net Sales:• Net Sales = Gross Sales - Sales Returns and Allowances Step 2:…

Q: Financial Account subject

A: The correct answer to this question is:C. road use would be rationed to drivers who benefit from it…

Q: Need help with this question solution general accounting

A: Step 1: Total Fair Market Value of All AssetsThe market values of the assets are:Land:…

Q: Find out the estimated amount of inventory

A: Explanation of Cost of Goods Available for Sale: Cost of goods available for sale represents the…

Q: Paste In General Account

A: Step 1: Understand the DefinitionsNet Realizable Value (NRV):NRV is the estimated selling price of…

Q: Please provide this question solution general accounting

A: Step 1: Formula Current Yield = Annual Interest/Current market price Step 2: Substitution Current…

Q: Need help with this question solution general accounting

A: Step 1: Define Over Or Under Allocated OverheadOverhead costs are allocated to production based on a…

Q: Jupiter explorer has $10600 in sales solve this accounting questions

A: Step 1: Define Price-Earnings RatioThe valuation of a firm may be carried out by using…

Q: Please provide answer the financial accounting question

A: Step 1: Define Dividend Growth ModelThe dividend growth model values stocks based on their expected…

Q: I want answer for this problem

A: Explanation of Job Costing: Job costing is a system used to track and allocate costs associated with…

Q: Question is below

A: Key Definitions Related to the Question:Materiality: This is an accounting concept that defines the…

Q: Subject:- General Account

A: To calculate the amount of taxes paid in 2008, we need to apply the Tax Code's net operating loss…

Q: ??

A: Explanation of SalesSales represent the total revenue generated by a company from selling goods or…

Q: Sub is account. solve asap

A: The manufacturing margin under variable costing, we only consider the sales revenue and variable…

Q: Please give me answer general accounting

A: Step 1: Calculate the Predetermined Overhead RateThe predetermined overhead rate (POHR) is based on…

Q: Accounting: Question

A: Explanation of Transaction Pattern Analysis:Transaction pattern analysis involves reviewing and…

Q: Provide correct solution for this financial accounting question

A: Step 1: Define Trading SecuritiesThe financial instrument the company holds to profit from its price…

Q: ACCOUNTING 3.7

A: Explanation of Activity-Based Costing (ABC): Activity-based costing is a method of assigning costs…

Q: The 2022 balance sheet of alpine sports solve this accounting questions

A: Step 1: Definition of Cash Flow to CreditorsCash flow to creditors refers to the net cash paid to…

Q: Financial accounting

A: Step 1: Define MarkupThe concept of markup, in business and economics, is the amount of money that…

Q: General Accounting

A: Step 1: Define Accrued InterestAccrued interest computation determines the interest incurred and…

Q: Hi expert please give me answer general accounting

A: Step 1: Define Accounting EquationThe balance sheet shows the changes in the accounting equation…

Q: General Accounting

A: Step 1: Define Depreciation And AmortizationDepreciation and amortization are non-cash expenses that…

Q: Hello solve and give true answer

A: To determine whether Ridley Company should retain or replace the old machine, we need to analyze the…

Q: Want Answer

A: Explanation of Standard Labor CostThe standard labor cost refers to the pre-determined cost per hour…

Q: How do the concepts of materiality and relevance guide accountants

A: Definitions of Key Concepts1. MaterialityDefinition: Materiality is a fundamental concept in…

Q: solution want

A: To determine the unit values for Herman Company's products under the Net Realizable Value (NRV)…

Q: Need answer for this account questions. please follow all numbers

A: a) To compute taxable income:Start with gross income: $8,500,000Subtract total expenses:…

Q: Financial Account - In March 2015, Sparrow Corporation hired three individuals Austin, Adam, and…

A: The Work Opportunity Tax Credit (WOTC) is available to employers for hiring individuals from certain…

Q: Hello tutor please provide this question solution general accounting

A: Step 1: Define EBITEBIT stands for earnings before interest and taxes. This is a measure of pre-tax…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Does it make sense for not-for-profit organizations such as hospitals and universitiesto have CFOs? Why or why not?
why do managers of governmental and not for non profit organizations need to understand financial information as much as profit seeking organization
How does using the accounting support fee to fund the FASB create more independence than using donations?
What are the financial reporting goals of not-for-profit organizations?
Give answer to this
Use the internet to research one for-profit, one governmental, and one not-for-profit entity. For each entity, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the entitys funding, and what costs might the entity have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process
Help
Provide answer with explanation
A student commented that “management accounting is much more relevant and important to profit making organizations compared to non-profit ones (such as governmental institutions) as the existence of the latter is not related to profit making”. How would you respond? Give some examples to support your point of view.
Discuss the basic assumptions of CVP analysis and how can we use CVP analysis in making decisions in a not-for-profit organization, as well as a for-profit organization?
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
Which of the following best describes a non-profit organization? One in which the leadership is governed by a board of directors O One in which the workforce is made up of volunteers O One that reinvests profit into the organization instead of distributing it to owners One that relies solely on private donations for the organization's financial needs