Purchase Solution

Assessing Governmental and Not-for-profit Accounting

Not what you're looking for?

Ask Custom Question

Question 1:
Government organizations and not-for-profit organizations (NPOs) are largely governed by their budgets, not the marketplace. Consequently, the budget, not the financial statements, is the most significant financial document. Nonetheless, most financial reports do not present much detail on the budget.

How, in your opinion, can the budget be described as important, but comprise a small component of the governmental financial reports? Do you think the coverage of the budget in the financial statements is adequate? Why? Which stakeholders might be more interested in the budget rather than the financial statements? Why?
Some governments do not integrate their budgets into their accounting system or encumber the cost of goods or services for which they are committed. Both scenarios reduce the budgeting process' ability to control spending. Under what circumstances should a government choose not to encumber the cost of goods and services? Under what circumstances would a government not integrate its budget? Under these conditions, how is budgetary control achieved?

Question 2:
A political official boasts that the year-end excess of revenues over expenditures was significantly greater than was budgeted. Are favorable budget variances necessarily a sign of efficient and effective governmental management? Explain why and provide two examples to support your answer. Moreover, the variances reported in the final budget-to-actual comparisons may be of no value in revealing the reliability of budget estimates made at the start of the year. Do you agree or disagree? Provide at least two examples to support your answer.

Purchase this Solution
Solution Summary

This solution discusses the purpose and use of governmental and not-for-profit accounting.

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

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.

View More Free Quizzes
Related BrainMass Solutions

  • Governmental vs for profit accounting

    434136 Governmental vs for profit accounting What do you view as the biggest differences between governmental accounting and for-profit financial accounting? Explain your rationale.

  • Should CPA firm add services for Health Care Organizations?

    If we obtain a healthcare client, we will need to know the fundamental of healthcare accounting, including for-profit (FP), not-for-profit (NFP) and governmental accounting (GOV) and reporting requirements.

  • Understanding state and local financial reporting

    Accounting and financial reporting for governmental and not-for-profit organizations is also markedly different from accounting and financial reporting for businesses.

  • Difference Between Government and For-Profit Accounting

    476796 Nonprofit and Government Accounting What do you view as the biggest difference between governmental accounting and for-profit financial accounting?

  • Government and Nonprofit Accounting

    d) The correlation between revenues generated and demand for goods or services. 3. Which of the following is NOT a reason why users need governmental and not-for-profit external financial statements?

  • Accountability in Reporting

    //Before writing about the core Government and Not-for-profit accounting concepts and practices in the memorandum, we will discuss about the Governmental or Not-for-profit entities and their resource allocation practices.

  • FASB vs GASB: Article about differences (Higher Education)

    Governmental accounting reports the activities of governmental units which differ considerably from for-profit businesses but not so significantly from not-for-profit businesses.

  • Funds & Accounting

    200916 Government and not-for-profit accounting Please assist in answering the following questions. 1. Distinguish between funds as the term is used in government and not-for-profit accounting as contrasted with business accounting. 2.

  • Business/Government Accountability

    562670 Accountability Write a one page, double spaced memo to a non-financial audience explaining how increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and governmental entities.

View More Related Solutions