UNIT 24 study guide - - balance sheet- assets, liabilities-...

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UNIT 24 1) Businesses •Purpose is to increase owner’s wealth (profit) •Revenues come from exchange transactions (we know when a sale occurs) •Resource providers do not impose restrictions on their use Government and Non profits •Purpose is to provide services •Revenues come from taxes, donations, or grants (when do we record revenue?) •Restrictions are commonly placed on resources by –Legal restrictions –Budgets –Donors or Granting Agencies - fund accounting comes from governments managing restrictions through the use of funds 2) two major financial statements Statement of Activities - income statement - revenues - less expenses - yields surplus or deceit Statement of financial position
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Unformatted text preview: - balance sheet- assets, liabilities- net assets 3) Program service expenditures- things needed to run program Support service expenditures- fundraising, etc 4) Describe and give examples of business-type activities reported by governments 5) Recognize that section 501 (c )3 covers non-profit organizations but does not completely restrict the organizations activities with respect to proportions of revenue that can be spend on program service and support service activities. 6) Recognize that section 501 (c )3 requires that profit making activities be reported separately, and requires that income tax be paid on profits earned by the unrelated business activities...
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This note was uploaded on 01/11/2012 for the course ACTG 241 taught by Professor Staff during the Fall '11 term at James Madison University.

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UNIT 24 study guide - - balance sheet- assets, liabilities-...

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