Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 1Q
To determine
State the differences between business organizations and government/ not-for-profit organizations.
Expert Solution & Answer
Explanation of Solution
The differences between business organizations and government/ not-for-profit organizations are as follows:
Business Organizations | Government/Not-for-for profit Organizations |
Business organizations are generally formed to earn income. The main aim of the owners of these organizations is to make profit. Business organizations refers to an individual or group of people who work together to attain certain commercial objectives. |
It is an individual or group of people who work together to attain the goals and mission of an organization. It will not earn profit for the owners. |
The resource providers expect either repayment or economic benefits in proportion with the provided resources. | The economic providers do not expect repayment or economic benefits in proportion with the provided resources |
The prime motive of business organizations is to provide goods or services at a profit. | Primary operations are not undertaken to provide goods or services at a profit or profit equivalent. |
In this type of organizations, the ownership can be sold and transferred. The owner can acquire the resources at the time of liquidation. | In this type of organizations, the ownership interests are not defined. |
Table (1)
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Chapter 1 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Explain the meaning and significance of...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - What are the three sections of a comprehensive...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11CCh. 1 - Prob. 12CCh. 1 - Prob. 13CCh. 1 - Prob. 14CCh. 1 - Prob. 16CCh. 1 - Prob. 18EPCh. 1 - Prob. 19.1EPCh. 1 - Prob. 19.2EPCh. 1 - Prob. 19.3EPCh. 1 - Prob. 19.4EPCh. 1 - Prob. 19.5EPCh. 1 - Prob. 19.6EPCh. 1 - Prob. 19.7EPCh. 1 - Prob. 19.8EPCh. 1 - Prob. 19.9EPCh. 1 - The primary reason that not-for-profit (NFP)...Ch. 1 - Matching. (LO1-1, LO1-2, LO1-4, LO1-5) For each...Ch. 1 - Prob. 21EP
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- Use the internet to research one for-profit, one governmental, and one not-for-profit entity. For each entity, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the entitys funding, and what costs might the entity have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making processarrow_forwardWhat type of organization primarily offers tax compliance, auditing, and consulting services? A. corporations B. public accounting firms C. governmental entities D. universitiesarrow_forwardWhich of the following best defines stakeholders? A. investors and lenders B. environmental groups C. anyone directly or indirectly affected by the organization D. groups or individuals financially impacted by the organizationarrow_forward
- Discuss the basic assumptions of CVP analysis and how can we use CVP analysis in making decisions in a not-for-profit organization, as well as a for-profit organization?arrow_forwardDefine Not-for-Profit organizations. Explain what distinguishes governmental not-for-profit organizations from nongovernmental, not-for-profit organizations. Why is such a distinction necessary? Mention the objectives of financial reporting of not-for-profit organizations?arrow_forwardExamine the role of accounting theory in addressing the challenges of measuring and reporting the performance of non-profit organizations and government entities.arrow_forward
- 13. Discuss how characteristics of not-for-profit organizations differ from for-profit organizations in accounting.arrow_forwardIdentify some difference between private organization and nonprofit organization?arrow_forward1) Write any two differences between non-profit organization and governmental organization?arrow_forward
- What is the difference between For-profit organizations and Not-for-profit organizations?arrow_forwardWhat is the difference between a balance sheet of a non profit organization and a for - profit business ?arrow_forwardWhat is the major difference between a for-profit and a not-for-profit organization?arrow_forward
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