Purchase Solution

Understanding state and local financial reporting

Not what you're looking for?

Ask Custom Question

What are three key components a financial report user must know to understand state and local governments?

Purchase this Solution

Solution Summary

Governmental and not-for-profit organizations differ in many important ways from business organizations. Accounting and financial reporting for governmental and not-for-profit organizations is also markedly different from accounting and financial reporting for businesses. Accordingly, an understanding of how these organizations differ from business organizations is essential to understanding the unique accounting and financial reporting principles that have evolved for governmental and not-for-profit organizations.

In its Statement of Financial Accounting Concepts No. 4, the Financial Accounting Standards Board (FASB) noted the following three key components that a financial report user must know in order to distinguish governmental and not-for-profit entities from business organizations (FASB, 1980, p. 11):

Solution Preview

Note: For your convenience, I have attached a fully formatted APA paper to this post.

Governmental and not-for-profit organizations differ in many important ways from business organizations. Accounting and financial reporting for governmental and not-for-profit organizations is also markedly different from accounting and financial reporting for businesses. Accordingly, an understanding of how these organizations differ from business organizations is essential to understanding the unique accounting and financial reporting principles that have evolved for governmental and not-for-profit ...

Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking