Governmental and Nonprofit Accounting Chapter 1 – Questions and Answers Page 1 Governmental and Nonprofit Accounting Chapter 1 – Questions and Answers.pdf
Governmental and Nonprofit
Accounting Chapter 1 –
Questions and Answers
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Page 1 of 11 2026-03-17
, Governmental and Nonprofit Accounting_ Chapter 1 Page 2 Governmental and Nonprofit Accounting_ Chapter 1.pdf
Characteristics of G&NP Organizations:
1. Absence of profit motive
2. Owned by constituents (no stock)
3. Contributors of resources do not receive proportional share of benefits
4. Decisions made directly or indirectly by voters
5. Meetings where decisions are made are usually open to the public
Similarities to the Private Sector:
1. Operate in the same economy and compete fro same resources: financial, capital, and human
2. Acquire and convert scarce resources into goods and services
3. Use of accounting and other information systems
4. Need to operate economically, effectively, and efficiently
5. Provide goods and services, many of which may be similar
Differences from the Private Sector:
1. Organizational objectives
2. Sources of financial resources
3. Methods of evaluating performance and operating results
Page 2 of 11 2 of 11 2026-03-17
Governmental and Nonprofit
Accounting Chapter 1 –
Questions and Answers
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_1 of 11
Page 1 of 11 2026-03-17
, Governmental and Nonprofit Accounting_ Chapter 1 Page 2 Governmental and Nonprofit Accounting_ Chapter 1.pdf
Characteristics of G&NP Organizations:
1. Absence of profit motive
2. Owned by constituents (no stock)
3. Contributors of resources do not receive proportional share of benefits
4. Decisions made directly or indirectly by voters
5. Meetings where decisions are made are usually open to the public
Similarities to the Private Sector:
1. Operate in the same economy and compete fro same resources: financial, capital, and human
2. Acquire and convert scarce resources into goods and services
3. Use of accounting and other information systems
4. Need to operate economically, effectively, and efficiently
5. Provide goods and services, many of which may be similar
Differences from the Private Sector:
1. Organizational objectives
2. Sources of financial resources
3. Methods of evaluating performance and operating results
Page 2 of 11 2 of 11 2026-03-17
