ACCY 407 ch 1. Top Questions & Answers, 100% Accurate. VERIFIED.

ACCY 407 ch 1. Top Questions & Answers, 100% Accurate. VERIFIED. General Purpose Government - -provide a broad array of services Special purpose government - -provide only a single or just a few services; ex: public university, hospital Not-for-Profit Organization - -legally separate from those who they receive money from; usually exempt from federal, state, and local taxation Ex: Harvard (private university) How Governments and NFPs are different from Business Organizations - -1. G&NP receive money from people who don't expect money/benefits in return 2. they aren't operating to make profits 3. they have no ownership how Governments are different from NFPs - -1. power is in hands of the people 2. empowered by and accountable to higher level of govt 3. can tax FASB - -business organizations and Nongovernmental NFPs (Harvard) follow these standards GASB - -State and local govts and Governmental NFPs (Ole Miss) follow these standards FASAB - -Federal Government & its agencies and depts follow these standards objectives of financial reporting for business organizations - -1. SFAC1- provide useful info for invest and credit decisions; provide useful info for going concern of business; provide info of businesses resources and claims on liabilities objectives of financial reporting for State & Local Govts - -1. Accountability 2. Interperiod Equity Accountability - -key to all financial reporting in Governments; citizens right to know; duty for public officials to be transparent w/ public Interperiod Equity - -Government's obligation to disclose whether CY revenues were sufficient to cover CY benefits; will future taxpayers have to pay for them instead? Minimum Requirements for General Purpose External Financial Reporting - -1. MD&A 2. Govt-Wide FS 3. Fund FS 4. Notes on FS 5. Required Supplementary Info Formal Definition of Govt-Wide FS - -provide an aggregated overview of government's net position & change in net position Government-Wide FS - -help assess Operational Accountability; focus on Flow of Economic Resources; Accrual basis of accounting Operational Accountability - -whether government has used its resources efficiently and effectively in meeting service objectives Fund Financial Statements - -provide more detailed financial info about a government