non profit test 1 study guide

non profit test 1 study guide - Chapter 1 Governmental and...

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Chapter 1 Governmental and not-for-profit organizations (2) Governmental Entities include: 1.Federal Government, 2.General purpose political subdivisions (states, counties ect), 3.Special Purpose Political Subdivisions (schools), 4.Public corporations and bodies corporate and politic (toll bridges) 4 rules for determining if an organization is governmental (pg 3) Not for Profit Entity Characteristics Governmental and Not-For-Profit Entity Environment (3) Organizational purposes Sources of revenue and relationship with stakeholders Potential for Longevity Roll of the Budget and Legal Requirements Users and Uses of accounting information (6) Accounting Principles and Standards (6) Establishing GAAP Hierarchy of accounting principles Objectives of Financial Reporting (9) State and Local Governmental Financial Reporting Federal Government Financial Reporting Not-for-Profit Organization Financial Reporting Unique Accounting and Financial Reporting Characteristics (10) Use of Fund Accounting Incorporation of Budgets into Accounting Systems Measurement Focus and Basis of Accounting Entity Wide and Fund Level Reporting E1-5 The FASAB established the objective to create accountability. Different people need to be in charge of different parts of the accounting cycle so that they are accountable to each-other (internal control). C1-2 The administrator should not allow this because junk bonds are not very safe and they could lose all of the money and be financially worse off. That would not be conservative.
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Chapter 2 Fund Accounting (15) Funds as Subdivisions of an Entity Why Governments Use Fund Accounting Fund Categories a. Governmental: accumulation and spending of resources (taxes) b. Proprietary: account for governmental activities similar to businesses c. Fiduciary: account for resources held in a trust or agency for others Financial Reporting with the use of funds Measurement Focus and Basis of Accounting (18) Application to proprietary-type and fiduciary-type funds- economic resources measurement focus and accrual basis of accounting Application to Governmental-Type Funds: current financial resources measurement focus and modified accrual basis of accounting o Revenue Recognition: accrual-recognized when earned; modified: measurable/available o Expenditure Recognition: 3 types capital asset acquisitions, current operating items, debt service
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This note was uploaded on 10/27/2008 for the course ACCT 47 taught by Professor D during the Spring '08 term at Black Hills State University.

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non profit test 1 study guide - Chapter 1 Governmental and...

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