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Solution Manual for Government And Not For Profit Accounting
uo uo uo uo uo uo uo uo
Concepts And Practices 9th Edition Michael H. Granof|Latest
uo uo uo uo uo uo uo uo
Updated Version 2024. A+
uo uo uo uo
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,Created uoBy: uoA
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Chapter 1 uo
The Government and Not-For-Profit Environment
uo uo uo uo
Questions uofor uoReview uoand uoDiscussion
1. The uocritical uodistinction uobetween uofor-profit uobusinesses uoand uonot-for-profits uoincluding
uo governments uois uothat uobusinesses uohave uoprofit uoas uotheir uomain uomotive uowhereas uothe uoothers
uo have uoservice. uoA uoprimary uopurpose uoof uofinancial uoreporting uois uoto uoreport uoon uoan uoentity‘s
accomplishments uo— uohow uowell uoit uoachieved uoits uoobjectives. uoAccordingly, uothe uofinancial
uo
uo statements uoof uobusinesses uomeasure uoprofitability, uotheir uokey uoobjective. uoFinancial uoreports uoof
uo governments uoand uoother uonot-for-profits uoshould uonot uofocus uoon uoprofitability, uosince uoit uois uonot uoa
uo relevant uoobjective. uoIdeally, uotherefore, uothey uoshould uofocus uoon uoother uoperformance uoobjectives,
uo such uoas uohow uowell uothe uoorganizations uomet uotheir uoservice uogoals. uoIn uoreality, uohowever, uothe
uo goal uoof uoreporting uoon uohow uowell uothey uohave uoachieved uosuch uogoals uohas uoproven uodifficult uoto
uo attain uoand uothe uofinancial uoreports uohave uofocused uomainly uoon uofinancially- uorelated uodata.
2. Governments uoand uonot-for-profits uoare uo―governed‖ uoby uothe uobudget, uowhereas
uo businesses uoare uogoverned uoby uothe uomarketplace. uoThe uobudget uois uothe uokey uopolitical uoand uofiscal
uo document uoof u o governments uoand uonot-for-profits. uoIt uodetermines uohow uoan uoentity uoobtains uoits
uo resources uoand uohow uoit uoallocates uothem. uoIt uoencapsulates uomost uokey uodecisions uoof uoconsequence
made uoby uothe uoorganization. uoIn uoa uogovernment uothe uobudget uois uonot uomerely uoa uomanagerial
uo
uo document; uoit uois uothe uolaw.
3. Owing uoto uothe uosignificance uoof uothe uobudget, uoconstituents uowant uoassurance uothat uothe
entity uoachieves uoits uorevenue uoestimates uoand uocomplies uowith uoits uospending uomandates.
uo
uo They uoexpect uothe uofinancial uostatements uoto uoreport uoon uohow uothe uobudget uowas
uo administered.
4. Interperiod uoequity uois uothe uoconcept uothat uotaxpayers uoof uotoday uopay uofor uothe uoservices
uo that uothey uoreceive uoand uonot uoshift uothe uopayment uoburden uoto uotaxpayers uoof uothe uofuture.
Financial uoreporting uomust uoindicate uothe uoextent uoto uowhich uointerperiod uoequity uohas uobeen
uo
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uoachieved. uoTherefore, uoit uomust uodetermine
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and uoreport uoupon uothe uoeconomic uocosts uoof uothe uoservices uoperformed uo(not uomerely uothe uocash uocosts)
and uoof uothe uotaxpayers‘ uocontribution uotoward uocovering uothose uocosts.
uo
5. The uomatching uoconcept uomay uobe uoless uorelevant uofor uogovernments uoand uonot-for-profits
than uofor uobusinesses uobecause uothere uomay uobe uono uoconnection uobetween uorevenues uogenerated
uo
uo and uothe uoquantity, uoquality uoor uocost uoof uoservices uoperformed. uoAn uoincrease uoin uothe uodemand
uo for, uoor uocost uoof, uoservices uoprovided uoby uoa uohomeless uoshelter uowould uonot uonecessarily uoresult
uo in uoan uoincrease uoin uothe uoamount uoof uodonations uothat uoit uoreceives. uoOf uocourse, uogovernments
uo and uonot- uofor-profits uoare uoconcerned uowith uomeasuring uointerperiod uoequity uoand uofor uothat
uo purpose uothe uomatching uoconcept uomay uobe uovery uorelevant.
6. Governments uomust uomaintain uoan uoaccounting uosystem uothat uoassures uothat uorestricted
uo resources uoare uonot uoinadvertently uoexpended uofor uoinappropriate uopurposes. uoMoreover,
statement uousers uomay uoneed uoseparate uoinformation uoon uothe uorestricted uoresources uoby uocategory
uo
uo of uorestriction uoand uothe uounrestricted
resources. uoIn uopractice, uothese uorequirements uohave uoled uogovernments uoto uoadopt uoa uosystem uoof
―fund‖ uoaccounting uoand uoreporting.
uo
7. Even uogovernments uowithin uothe uosame uocategory uomay uoengage uoin uodifferent uotypes uoof
uo activities. uoFor uoexample, uosome uocities uooperate uoa uoschool uosystem uowhereas uoothers uodo uonot.
uo Those uothat uoare uonot uowithin uothe uosame uocategory uomay uohave uorelatively uolittle uoin uocommon. uoFor
example, uoa uostate uogovernment uoshares uofew uocharacteristics uowith uoa uocity.
uo
8. If uoa uogovernment uohas uothe uopower uoto uotax, uothen uoit uohas uocommand uoover, uoand uoaccess uoto,
resources. uoTherefore, uoits uofiscal uowell-being uocannot uobe uoassessed uomerely uoby uomeasuring uothe
uo
u o assets u o that u o it
―owns.‖ u o For u o example, u o the u o fiscal u o condition u o of u o a u o city u o should uoincorporate uothe
wealth uoof uothe uoresidents uoand uobusinesses uowithin uothe uocity, uotheir uoearning uocapacity, uoand uothe
uo
uo city‘s uowillingness uoto uoexploit uoits uotax uobase.
9. Many uogovernments uobudget uoon uoa uocash uoor uonear-cash uobasis. uoHowever, uothe uocash uobasis
uo of uoaccounting uodoes uonot uoprovide uoadequate uoinformation uowith uowhich uoto uoassess uointerperiod
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Solution
Solution Manual for Government And Not For Profit Accounting
uo uo uo uo uo uo uo uo
Concepts And Practices 9th Edition Michael H. Granof|Latest
uo uo uo uo uo uo uo uo
Updated Version 2024. A+
uo uo uo uo
https://www.stuvia.com/user/asolution
,Created uoBy: uoA
Solution
Chapter 1 uo
The Government and Not-For-Profit Environment
uo uo uo uo
Questions uofor uoReview uoand uoDiscussion
1. The uocritical uodistinction uobetween uofor-profit uobusinesses uoand uonot-for-profits uoincluding
uo governments uois uothat uobusinesses uohave uoprofit uoas uotheir uomain uomotive uowhereas uothe uoothers
uo have uoservice. uoA uoprimary uopurpose uoof uofinancial uoreporting uois uoto uoreport uoon uoan uoentity‘s
accomplishments uo— uohow uowell uoit uoachieved uoits uoobjectives. uoAccordingly, uothe uofinancial
uo
uo statements uoof uobusinesses uomeasure uoprofitability, uotheir uokey uoobjective. uoFinancial uoreports uoof
uo governments uoand uoother uonot-for-profits uoshould uonot uofocus uoon uoprofitability, uosince uoit uois uonot uoa
uo relevant uoobjective. uoIdeally, uotherefore, uothey uoshould uofocus uoon uoother uoperformance uoobjectives,
uo such uoas uohow uowell uothe uoorganizations uomet uotheir uoservice uogoals. uoIn uoreality, uohowever, uothe
uo goal uoof uoreporting uoon uohow uowell uothey uohave uoachieved uosuch uogoals uohas uoproven uodifficult uoto
uo attain uoand uothe uofinancial uoreports uohave uofocused uomainly uoon uofinancially- uorelated uodata.
2. Governments uoand uonot-for-profits uoare uo―governed‖ uoby uothe uobudget, uowhereas
uo businesses uoare uogoverned uoby uothe uomarketplace. uoThe uobudget uois uothe uokey uopolitical uoand uofiscal
uo document uoof u o governments uoand uonot-for-profits. uoIt uodetermines uohow uoan uoentity uoobtains uoits
uo resources uoand uohow uoit uoallocates uothem. uoIt uoencapsulates uomost uokey uodecisions uoof uoconsequence
made uoby uothe uoorganization. uoIn uoa uogovernment uothe uobudget uois uonot uomerely uoa uomanagerial
uo
uo document; uoit uois uothe uolaw.
3. Owing uoto uothe uosignificance uoof uothe uobudget, uoconstituents uowant uoassurance uothat uothe
entity uoachieves uoits uorevenue uoestimates uoand uocomplies uowith uoits uospending uomandates.
uo
uo They uoexpect uothe uofinancial uostatements uoto uoreport uoon uohow uothe uobudget uowas
uo administered.
4. Interperiod uoequity uois uothe uoconcept uothat uotaxpayers uoof uotoday uopay uofor uothe uoservices
uo that uothey uoreceive uoand uonot uoshift uothe uopayment uoburden uoto uotaxpayers uoof uothe uofuture.
Financial uoreporting uomust uoindicate uothe uoextent uoto uowhich uointerperiod uoequity uohas uobeen
uo
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uoachieved. uoTherefore, uoit uomust uodetermine
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, Created uoBy: uoA
Solution
and uoreport uoupon uothe uoeconomic uocosts uoof uothe uoservices uoperformed uo(not uomerely uothe uocash uocosts)
and uoof uothe uotaxpayers‘ uocontribution uotoward uocovering uothose uocosts.
uo
5. The uomatching uoconcept uomay uobe uoless uorelevant uofor uogovernments uoand uonot-for-profits
than uofor uobusinesses uobecause uothere uomay uobe uono uoconnection uobetween uorevenues uogenerated
uo
uo and uothe uoquantity, uoquality uoor uocost uoof uoservices uoperformed. uoAn uoincrease uoin uothe uodemand
uo for, uoor uocost uoof, uoservices uoprovided uoby uoa uohomeless uoshelter uowould uonot uonecessarily uoresult
uo in uoan uoincrease uoin uothe uoamount uoof uodonations uothat uoit uoreceives. uoOf uocourse, uogovernments
uo and uonot- uofor-profits uoare uoconcerned uowith uomeasuring uointerperiod uoequity uoand uofor uothat
uo purpose uothe uomatching uoconcept uomay uobe uovery uorelevant.
6. Governments uomust uomaintain uoan uoaccounting uosystem uothat uoassures uothat uorestricted
uo resources uoare uonot uoinadvertently uoexpended uofor uoinappropriate uopurposes. uoMoreover,
statement uousers uomay uoneed uoseparate uoinformation uoon uothe uorestricted uoresources uoby uocategory
uo
uo of uorestriction uoand uothe uounrestricted
resources. uoIn uopractice, uothese uorequirements uohave uoled uogovernments uoto uoadopt uoa uosystem uoof
―fund‖ uoaccounting uoand uoreporting.
uo
7. Even uogovernments uowithin uothe uosame uocategory uomay uoengage uoin uodifferent uotypes uoof
uo activities. uoFor uoexample, uosome uocities uooperate uoa uoschool uosystem uowhereas uoothers uodo uonot.
uo Those uothat uoare uonot uowithin uothe uosame uocategory uomay uohave uorelatively uolittle uoin uocommon. uoFor
example, uoa uostate uogovernment uoshares uofew uocharacteristics uowith uoa uocity.
uo
8. If uoa uogovernment uohas uothe uopower uoto uotax, uothen uoit uohas uocommand uoover, uoand uoaccess uoto,
resources. uoTherefore, uoits uofiscal uowell-being uocannot uobe uoassessed uomerely uoby uomeasuring uothe
uo
u o assets u o that u o it
―owns.‖ u o For u o example, u o the u o fiscal u o condition u o of u o a u o city u o should uoincorporate uothe
wealth uoof uothe uoresidents uoand uobusinesses uowithin uothe uocity, uotheir uoearning uocapacity, uoand uothe
uo
uo city‘s uowillingness uoto uoexploit uoits uotax uobase.
9. Many uogovernments uobudget uoon uoa uocash uoor uonear-cash uobasis. uoHowever, uothe uocash uobasis
uo of uoaccounting uodoes uonot uoprovide uoadequate uoinformation uowith uowhich uoto uoassess uointerperiod
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