Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 1Q
To determine
State the differences between business organizations and government/ not-for-profit organizations.
Expert Solution & Answer
Explanation of Solution
The differences between business organizations and government/ not-for-profit organizations are as follows:
| Business Organizations | Government/Not-for-for profit Organizations |
|
Business organizations are generally formed to earn income. The main aim of the owners of these organizations is to make profit. Business organizations refers to an individual or group of people who work together to attain certain commercial objectives. |
It is an individual or group of people who work together to attain the goals and mission of an organization. It will not earn profit for the owners. |
| The resource providers expect either repayment or economic benefits in proportion with the provided resources. | The economic providers do not expect repayment or economic benefits in proportion with the provided resources |
| The prime motive of business organizations is to provide goods or services at a profit. | Primary operations are not undertaken to provide goods or services at a profit or profit equivalent. |
| In this type of organizations, the ownership can be sold and transferred. The owner can acquire the resources at the time of liquidation. | In this type of organizations, the ownership interests are not defined. |
Table (1)
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The rollowing is additional Informacon soous transectons cunne tie year shoes may sa, coat for Monty ancy which tohows arks. Plant assets costing $69,000 were purchased by paying $47,000 in cash and issuing 5,000 common shares. In order to supplement is casn, Monty Issued ,000 edditone common snares. Cash dividends of $35,000 were declared and paid at the end of the fiscal year
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Unearned rent revenue 144
Common stock 220
Retained earnings 6740
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Chapter 1 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Explain the meaning and significance of...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - What are the three sections of a comprehensive...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11CCh. 1 - Prob. 14CCh. 1 - Prob. 15CCh. 1 - Prob. 17EPCh. 1 - Prob. 18.1EPCh. 1 - Prob. 18.2EPCh. 1 - Prob. 18.3EPCh. 1 - Prob. 18.4EPCh. 1 - Prob. 18.5EPCh. 1 - Prob. 18.6EPCh. 1 - Prob. 18.7EPCh. 1 - Prob. 18.8EPCh. 1 - Prob. 18.9EPCh. 1 - The primary reason that not-for-profit (NFP)...Ch. 1 - Prob. 19EP
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