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    Government & Non-Profit Accounting Questions

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    Will someone please check my answers to the attached questions? Disregard #11.

    See questions below:

    EXERCISES1-1

    1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that

    a. They have different missions
    b. They have fewer assets
    c. Their assets are intangible
    d. Taxes are a major expenditure of businesses

    3. The primary objective of a not-for-profit organization or a government is to

    a. Maximize revenues
    b. Minimize expenditures
    c. Provide services to constituents
    d. All of the above

    4. In governments, in contrast to businesses,

    a. Expenditures are driven mainly by the ability of the entity to raise revenues
    b. The amount of revenues collected is a signal of the demand for services
    c. There may not be a direct relationship between revenues raised and the demand for the entity's services
    d. The amount of expenditures is independent of the amount of revenues collected

    5. The organization responsible for setting accounting standards for state and local governments is the

    a. FASB
    b. GASB
    c. FASAB
    d. AICPA

    7. Governments differ from businesses in that they
    a. Do not raise capital in the financial markets
    b. Do not engage in transactions in which they ''sell'' goods or services
    c. Are not required to prepare annual financial reports
    d. Do not issue common stock

    8. Inter-period equity refers to a condition where by
    a. Total tax revenues are approximately the same from year to year
    b. Taxes are distributed fairly among all taxpayers regardless of income level
    c. Current-year revenues are sufficient to pay for current-year services
    d. Current-year revenues cover both operating and capital expenditures

    Thank you.

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    https://brainmass.com/business/the-role-of-government-and-regulation/government-non-profit-accounting-questions-158793

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    Hi,

    Interesting set of questions! Let's take a closer look.

    RESPONSE:

    Individual Assignment

    EXERCISES1-1

    1. The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that

    a. They have different missions
    b. They have fewer assets
    c. Their assets are intangible
    d. Taxes are a major expenditure of businesses

    Correct Answer: (a) They have different missions. Good work!

    The missions are different because the main mission of a business is to make a profit; whereas governments and not-for-profits organizations is to support or to actively engage in activities of public or private interest without any commercial or monetary profit ...

    Solution Summary

    This solution checks and also provides the correct answer with an explanation for each of the government and non-profit accounting multiple choice questions.

    $2.19