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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Textbook Question
Chapter 1, Problem 1Q
Discuss (a) the similarities in accounting for profit-seeking and G&NP organizations, and (b) the unique aspects of accounting for G&NP organizations designed to help ensure compliance with budgeted spending limits.
(a)
Expert Solution
To determine
Discuss the similarities in accounting for G&NP (Governmental and Non-profit) organizations and profit seeking organizations.
Explanation of Solution
The following are the similarities in accounting for G&NP (Governmental and Non-profit) organizations and profit seeking organizations:
- Both G&NP and profit seeking organizations use double entry system of book keeping for recording the transaction.
- Both G&NP and profit seeking organizations use same accounting procedures like journal entries, general ledger, and chart of accounts.
- Both the organizations follow GAAP (Generally Accepted Accounting Principles).
(b)
Expert Solution
To determine
Discuss the unique aspect of accounting for G&NP (Governmental and Non-profit) organizations.
Explanation of Solution
The unique aspect of G&NP organization are fund accounting and budgetary control techniques. Fund accounting is designed to separate funds based on the purpose they are used and it accounts their uses and balances. Budgetary control techniques help in controlling the over expended. It is the performance evaluator as it controls the amount of profit generated, statutory control, and helps in spending efficiently within the budget appropriation.
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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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