Please provide detailed, accurate and comprehendible answer for the question below. Please provide no less than 300 words. Thank You
What are the basic financial statements that a state or local government now use? How are these different from the financials statement in a for profit organization? Look up the financial statement for Radcliff, KY and discuss their components in your answer.© BrainMass Inc. brainmass.com October 2, 2020, 6:02 am ad1c9bdddf
Please note: I have provided you with information and links, but I have specifically not written in full essay and paragraph style. I want to fully support your ability to complete this assignment, however, I have to be careful not to 'do the assignment for you' which is not ethical. You should easily be able to write a Compare and Contrast essay of over 300 words with the information below.
Local Government vs. for profit organization financial statements - A comparison
Financial statements are the basic document that communicates information about the financial condition and operational results of a company. Financial statements are required for all companies (both public and private), not-for-profit organizations, and state or local governments.
Financially reporting generally includes the following information:
• The basic financial position (balance sheet, statement of net position)
• Results of operations (statement of revenue, expenses and changes in net position, statement of comprehensive income, and various other statements that provide information on the change in position as a result of operations)
• Disclosures that are directly related to financial positions or exceptions that may need further explanation.
The accounting standards developed and established by the Financial Accounting Foundation's (FAF) standard-setting Boards—the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards ...
The standard accounting practices for governments differs from those that are required for businesses. Generally Accepted Accounting Principles (GAAP) focus on accrual accounting, where income and expenses are recognized when they occur, regardless of when cash exchanges hands. Government accounting is much more complex because of the reliance on taxes and fees for revenue, and the necessity that they conform to comparison against a public budget which has been passed by the government authority. This budget document forms the primary basis of comparison to determine deficits.