SOLUTION MANUAL For Government and Not-for-Profit Accounting: Concepts and Practices 9th Edition by Granof, Verified Chapters 1 - 17|| Complete Latest Guide A+

Solution Manual

For Government And Not-For-Profit Accounting: Concepts And
Practices
By Michael H. Granof


9th Edition




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,Table Of Content

Chapter 1 The Government And Not-For-Profit Environment.
Chapter 2 Fund Accounting.
Chapter 3 Issues Of Budgeting And Control.
Chapter 4 Recognizing Revenues In Governmental Funds.
Chapter 5 Recognizing Expenditures In Governmental Funds.
Chapter 6 Accounting For Capital Projects And Debt Service.
Chapter 7 Capital Assets And Investments In Marketable Securities.
Chapter 8 Long-Term Obligations.
Chapter 9 Business-Type Activities.
Chapter 10 Fiduciary Funds And Permanent Funds.
Chapter 11 Issues Of Reporting, Disclosure, And Financial Analysis.
Chapter 12 Not-For-Profit Organizations.
Chapter 13 Colleges And Universities.
Chapter 14 Health Care Providers.
Chapter 15 Managing For Results.
Chapter 16 Auditing Governments And Not-For-Profit Organizations.
Chapter 17 Federal Government Accounting.




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, Solution Manual For Government And Not For Profit Accounting
Concepts And Practices 9th Edition Michael H. Granof

Chapter 1

The Government And Not-For-Profit Environment

Questions For Review And Discussion

1. The Critical Distinction Between For-Profit Businesses And Not-For- Formatted: Section start: Continuou
Suppress Endnotes, From text: 1.02
Profits Including Governments Is That Businesses Have Profit As cm
Their Main Motive Whereas The Others
Have Service. A Primary Purpose Of Financial Reporting Is To
Report On An Entity‘S Accomplishments — How Well It Achieved
Its Objectives. Accordingly, The Financial Statements Of Businesses
Measure Profitability, Their Key Objective. Financial Reports Of
Governments And Other Not-For-Profits Should Not Focus On
Profitability, Since It Is Not A Relevant Objective. Ideally, Therefore,
They Should Focus On Other Performance Objectives, Such As How
Well The Organizations Met Their Service Goals. In Reality,
However, The Goal Of Reporting On How Well They Have
Achieved Such Goals Has Proven Difficult To Attain And The
Financial Reports Have Focused Mainly On Financially- Related
Data.

2. Governments And Not-For-Profits Are ―Governed‖ By The Budget,
Whereas Businesses Are Governed By The Marketplace. The Budget
Is The Key Political And Fiscal Document Of Governments And Not-
For-Profits. It Determines How An Entity Obtains Its Resources And
How It Allocates Them. It Encapsulates Most Key Decisions Of
Consequence Made By The Organization. In A Government The
Budget Is Not Merely A Managerial Document; It Is The Law.

3. Owing To The Significance Of The Budget, Constituents Want
Assurance That The Entity Achieves Its Revenue Estimates And
Complies With Its Spending Mandates. They Expect The Financial
Statements To Report On How The Budget Was Administered.

4. Interperiod Equity Is The Concept That Taxpayers Of Today Pay For
The Services That They Receive And Not Shift The Payment Burden
To Taxpayers Of The Future. Financial Reporting Must Indicate The
Extent To Which Interperiod Equity Has Been Achieved. Therefore,
It Must Determine And Report Upon The Economic Costs Of The
Services Performed (Not Merely The Cash Costs) And Of The
Taxpayers‘ Contribution Toward Covering Those Costs.
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, 5. The Matching Concept May Be Less Relevant For Governments And
Not-For-Profits Than For Businesses Because There May Be No
Connection Between Revenues Generated And




The Quantity, Quality Or Cost Of Services Performed. An Increase In
The Demand For, Or Cost Of, Services Provided By A Homeless
Shelter Would Not Necessarily Result In An Increase In The Amount
Of Donations That It Receives. Of Course, Governments And Not-
For-Profits Are Concerned With Measuring Interperiod Equity And
For That Purpose The Matching Concept May Be Very Relevant.

6. Governments Must Maintain An Accounting System That Assures
That Restricted Resources Are Not Inadvertently Expended For
Inappropriate Purposes. Moreover, Statement Users May Need
Separate Information On The Restricted Resources By Category Of
Restriction And The Unrestricted Resources. In Practice, These
Requirements Have Led Governments To Adopt A System Of
―Fund‖ Accounting And Reporting.

7. Even Governments Within The Same Category May Engage In
Different Types Of Activities. For Example, Some Cities Operate A
School System Whereas Others Do Not. Those That Are Not Within
The Same Category May Have Relatively Little In Common. For
Example, A State Government Shares Few Characteristics With A
City.

8. If A Government Has The Power To Tax, Then It Has Command
Over, And Access To, Resources. Therefore, Its Fiscal Well-Being
Cannot Be Assessed Merely By Measuring The Assets That It
―Owns.‖ For Example, The Fiscal Condition Of A City Should
Incorporate The Wealth Of The Residents And Businesses Within
The City, Their Earning Capacity, And The City‘S Willingness To
Exploit Its Tax Base.

9. Many Governments Budget On A Cash Or Near-Cash Basis.
However, The Cash Basis Of Accounting Does Not Provide
Adequate Information With Which To Assess Interperiod Equity.
Financial Statements That Satisfy The Objective Of Reporting On
Interperiod Equity May Not Satisfy That Of Reporting On Budgetary
Compliance. Moreover, Statements That Report On Either

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