ACCY 407 ch 1 Questions and answers, graded A+

ACCY 407 ch 1 Questions and answers, graded A+ 2 types of governments - 1. general purpose (broad array) 2. special purpose (single/few services) not-for-profit organizations - -legally separate -usually exempt from taxation difference between local governments/NFPs from businesses - -providers do not expect to receive repayment/economic benefits proportionate to resources provided -operating purposes other than good/services at a profit -no defined ownership interest that can be sold/transferred/redeemed difference between governments and NFPS - government: -power in hands of people -empowered by and accountable to higher level of government -taxation powers FASB - financial accounting standards board businesses/ nongovernmental NFP (Harvard) GASB - governmental accounting standards board governmental NFP (ole miss) FASAB - federal accounting standards advisory board federal gov, its agencies and departments objectives of financial reporting for business organizations - 1. provide useful information for making investment and credit decisions 2. provide info to assess amounts, timing & uncertainty of the firm's future cash flows 3. provide info about the firm's resources, claims, and changes