chapter_13 - Chapter 13 Personal Financial Statements and...

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Chapter 13 Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations TO THE NET 1. Mission of the Governmental Accounting Standards Board? The mission of the Governmental Accounting Standards Board is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public including issuers, auditors, and users of those financial reports. 2. Introduction to Performance Measurement “The assessment of a government entity’s performance requires more than information about the acquisition and use of resources. It also needs information about the outputs and outcomes of the services provided and the relationship between the use of resources and those outputs and outcomes. Employing a variety of measures of inputs, outputs and outcomes, measures that relate efforts to accomplishments, and additional explanatory material will assist users of general purpose external financial reports to assess governmental performance more fully. 110
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QUESTIONS 13- 1. Personal financial statements may be prepared for an individual, a husband and wife, or a larger family group. 13- 2. The basic personal financial statement is the Statement of Financial Condition. 13- 3. No. 13- 4. No. 13- 5. Estimated current value basis. 13- 6. Net worth. 13- 7. Statement of Changes in Net Worth. 13- 8. No. 13- 9. No. Generally accepted accounting principles as they apply to personal financial statements require the accrual basis. 13-10. No. Assets and liabilities are not classified as current and noncurrent. Assets and liabilities are classified in order of liquidity and maturity. 13-11. a. Broker's statements b. Income tax returns c. Safe deposit box d. Insurance policies e. Real estate tax return f. Checkbook g. Bank statements 13-12. Examples would be methods used in determining current values of major assets, description of intangible assets, and assumptions used to compute the estimated income taxes. 13-13. If quoted market prices are not available, then reasonable estimates should be used. 13-14. Note: This is an open-ended question. The responses here are merely suggestions. 1. Dues will not increase 2. A monthly magazine will be started 3. Add 100 new members 111
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4. Retain a minimum of 90% of the current members 13-15. No. Not-for-profit organizations are not allowed to use fund accounting. 13-16. No. The accounting for a profit-oriented business is centered on the entity concept and the efficiency of the entity. The accounting for governments does not include a single entity concept or efficiency. 13-17. a. General fund - All cash receipts and disbursements not required to be accounted for in another fund. b.
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chapter_13 - Chapter 13 Personal Financial Statements and...

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