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Cash Flow Statements

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Compare cash flow statements that a nongovernmentally owned hospital prepares versus the cash flow statements a governmentally owned hospital prepares.

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Solution Summary

Describes the differences between cash flow statements for government and non-government organisations.

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The difference between nongovernment financial statements and government-wide financial statements:

Government and non-profit organizations do not have profiteering as a major goal, so they use a system of accounting called fund accounting. Fund accounting categorizes financial data into funds or accounts that are similar to one another. For example, money for building something might go into a construction account. Fund accounting allows the organization to easily see what resources are available to it to complete a specific activity, like building a school for instance.

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