ch17 - Jeter_int_Ch17_802-850hr.qxd 16-11-2009 9:03 Page...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
802 17 INTRODUCTION TO FUND ACCOUNTING LEARNING OBJECTIVES 1 Distinguish between a nonbusiness organization and a profit-oriented enterprise. 2 Explain the role of fund accounting. 3 Distinguish among the concepts of revenues, expenses, and expenditures as used in profit-oriented entities and as used for expendable fund entities. 4 Understand the classification of revenues and other resource inflows for fund accounting. 5 Understand the classification of expenditures and other resource outflows for fund accounting. 6 Describe the critical events in the use of financial resources of an expendable fund. 7 Explain how capital expenditures are recorded in an expendable fund. 8 Understand the role of a general fund. 9 Contrast the consumption and the purchases methods of accounting for inventories (and other prepaid items). The 2005 Financial Report of the United States Government provides the president, Congress, and the American public information about the federal government’s financial results and position. This report is prepared in accordance with GAAP and is subject to audit by the Government Accountability Office (GAO). For fiscal years ended 2004 and 2005, the GAO was unable to express an opinion on the U.S. government’s consolidated financial statements due to material deficiencies in financial reporting. Of the 24 agencies that are consolidated in this report, only 18 received unqualified audit opinions. Four agencies, including the Department of Defense and the Department of Homeland Security, received disclaimers of opinion because of material deficiencies in financial reporting or because they had limited the scope of the auditor’s work. These agencies represented 58% of the government’s total assets. 1 Accounting for nonbusiness organizations is referred to as fund accounting. Nonbusiness organizations are economic entities that are organized to provide a socially desirable service without regard to financial gain. In contrast, business enterprises are designed to earn a return on investment for equity investors, oper- ate in a competitive market, and face liquidity concerns. 1 Financial Report of the United States (with a forward by Representative Jim Cooper), Nelson Current, 2006. IN THE NEWS IN THE NEWS Jeter_int_Ch17_802-850hr.qxd 16-11-2009 9:03 Page 802
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
L O Distinctions between Nonbusiness Organizations and Profit-Oriented Enterprises 803 2 “Reporting Unrelated Business Income,” by Travis Patton and Jocelyn Bishop, Journal of Accountancy , February 2009, p. 52. The purpose of this chapter is to introduce the reader to fund accounting con- cepts and procedures. However, it is first necessary to present a brief introduction to the types and characteristics of organizations that use fund accounting concepts. CLASSIFICATIONS OF NONBUSINESS ORGANIZATIONS
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/28/2011 for the course ACCY 593 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

Page1 / 49

ch17 - Jeter_int_Ch17_802-850hr.qxd 16-11-2009 9:03 Page...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online