Hannin

brassal and Nonprofit explanation Nicole Tanner March 2, 2012 1-2. Five environmental differences between authoritiess and for-profit channel enterprises. 1. Organizational purposes commercialisedised is to enured about profit for its owners and authorities is for the fountainhead being of citizens. 2. Sources of Revenue Business generate its inejaculate from sales. Government derives its income from levyes. 3. Potential for Longevity Government r arly go out of business and Business longevity is determine by the need and success. 4.Relationship with Stakeholders The establishment must take gradeability for unexclusive storehouses and a business bay window use its resources as it deems suspend. 5. Role of the Budget Commercial its apply for planning and control purposes, for presidential term budgets carry the authority of law, preventing 1-3. Identify and before long describe the trio giving medications that redact standards for offer and local anaesth etic governings, the national government, and non political non-for-profit organizations. 1. GASB set the invoice system and pecuniary reportage standards for plead and local government in the US.GASB also set accounting and fiscal describe standards for politically related not for profit organizations. 2. FASB set standards for profit seeking business and for nongovernmental not for profit organizations. 3. FASAB set the accounting and financial for the federal government. 1-4. What is the definition of a government as agreed upon by the FASB and GASB? in the public eye(predicate) corporations and bodies corporate and politic be governmental organizations. Other organizations argon governmental organizations if they birth one or more of the sp be-time activity characteristics. . Popular election of officers or naming (or approval) of a controlling major(ip)(ip)ity of the members of the organizations governing remains by officials of one or more invoke or local gove rnments. 2. The potential for biased dissolution by a government with the net assets reverting to a government. 3. The index finger to enact and enforce a tax levy. 1-5. Describe the hierarchy of GAAP for state and local governments, the federal government, and nongovernmental not-for-profit organizations. (See Illustration 1-2 come back to this) 1-8.GASB considers budgetary accounting and inform to be important. List the principles outlined by GASB related to budgetary accounting and reporting. 1. An annual budget(s) should be adopted by every(prenominal) governmental unit. 2. The accounting system should submit the origination for appropriate budgetary control. 3. Comparisons should be included in the appropriate financial statements and schedules for governmental property for which an annual budget has been adopted. 2-2. With regard to GASB rules for the financial reporting entity, solvent the interest 1. define the financial reporting entity.It is the main(a) governm ent together with its contribution units. 2. Define and give an example of a autochthonic government. Can be a state government, a widely distributed-purpose local government such(prenominal) as a city or county, or a exceptional(prenominal) purpose government such as a school district. 3. Define and give an example of a office unit. Are legally separate organizations for which the pick out officials of the primary government are financially accountable. 4. Define and describe the two methods of reporting the primary government and component units in the financial reporting entity. a.Primary Government -either appoints a voting majority of the governing body of the former(a) organization or members of the primary governments governing body hold a majority of the seats of the other organizations board. Second, the family relationship meets one of the following two criteria a. The other organization provides either a financial burden or benefit to the primary government. b. The primary government can gossip its exit on the other organization. b. component part units are legally separate organizations for which the pick out officials of the primary government are financially accountable.In addition, a component unit can be an organization for which the nature and import of its relationship with a primary government are such that exclusion would own the reporting entitys financial statements to be tawdry or incomplete. 2-3. With regard to the Comprehensive one-year Financial Report (CAFR) 1. What are the three major sections? Introductory, Financial, and Statistical. 2. List the government-wide statements. Indicate the measure focus and terms of accounting used for the government-wide statements. Basic Financial Statements Proprietary silver Statements Statement of Cash Flows.Governments use the aggregation foothold and the special accrual bag of accounting. 3. List the governmental origin statements. i. planetary blood. This lineage i s used to account for general operations and activities not requiring the use of other capital. ii. Special tax revenue currency are required to account for the use of revenue earmarked by law for a finical purpose. State and federal fuel tax revenues require special revenue gold, because federal and state laws restrict these taxes to transportation uses. iii. chief city projects funds are used to account for the construction or acquisition of persistent assets9, such as buildings, equipment and roads.Depending on its use, a fixed asset may alternatively be financed by a special revenue fund or a proprietary fund. iv. Debt service funds are used to account for money that will be used to pay the touch on and principal of long-term debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a time period of years, require a debt service fund to account for their repayment. v. Special assessment funds account for public infrastructur e improvements financed by special levies against property holders. Sidewalk and alleyway repairs often rely on special assessments. 4.Indicate the measurement focus and basis of accounting used for the governmental fund statements. It unremarkably rely on a modify accrual basis. 5. List the proprietary fund statements. vi. Internal service funds are used for operations serving other funds or departments within a government on a cost-reimbursement basis. A printing shop, which takes orders for booklets and forms from other offices and is reimbursed for the cost of each order, would be a suitable industry for an internal service fund. vii. Enterprise funds are used for services provided to the public on a user push basis, similar to the operation of a commercial enterprise.Water and sewage utilities are common examples of government enterprises. 5. Indicate the measurement focus and basis of accounting used for the proprietary fund statements. i. Proprietary funds, used for busi ness-like activities, usually start on an accrual basis. Governmental accountants sometimes refer to the accrual basis as full accrual to distinguish it from modified accrual basis accounting. 6. List the fiducial fund statements. Statement of Changes in fiduciary Net Assets and Statement of Changes in fiducial Net Assets. 7.Describe the measurement focus and basis of accounting used for the fiduciary fund statements. The accounting basis applied to fiduciary funds depends upon the needs of a ad hoc fund. If the trust involves a business-like operation, accrual basis accounting would be appropriate to verbalise the funds advantageousness. Accrual basis is also appropriate for trust funds using use up and dividends from invested principle amounts to pay for supported programs, because the profitability of those investments would be important. 8. Outline the reports and schedules to be report as required supplementary information.Come congest To 2-4. Describe the test for dete rmining whether a governmental fund is a major fund. The General Fund is always considered a major fund. Other governmental funds are considered major when both of the following conditions exist (a) total assets, liabilities, revenues, or expenditures of that individualist governmental fund constitute 10 percent of the total for the governmental funds category, and (b) total assets, liabilities, revenues, or expenditures of that individual governmental or enterprise fund are 5 percent of the total of the governmental and enterprise categories, combined. 2-10. Not sure