Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 1Q
To determine
State the differences between business organizations and government/ not-for-profit organizations.
Expert Solution & Answer
Explanation of Solution
The differences between business organizations and government/ not-for-profit organizations are as follows:
Business Organizations | Government/Not-for-for profit Organizations |
Business organizations are generally formed to earn income. The main aim of the owners of these organizations is to make profit. Business organizations refers to an individual or group of people who work together to attain certain commercial objectives. |
It is an individual or group of people who work together to attain the goals and mission of an organization. It will not earn profit for the owners. |
The resource providers expect either repayment or economic benefits in proportion with the provided resources. | The economic providers do not expect repayment or economic benefits in proportion with the provided resources |
The prime motive of business organizations is to provide goods or services at a profit. | Primary operations are not undertaken to provide goods or services at a profit or profit equivalent. |
In this type of organizations, the ownership can be sold and transferred. The owner can acquire the resources at the time of liquidation. | In this type of organizations, the ownership interests are not defined. |
Table (1)
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Chapter 1 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Explain the meaning and significance of...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - What are the three sections of a comprehensive...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11CCh. 1 - Prob. 12CCh. 1 - Prob. 13CCh. 1 - Prob. 14CCh. 1 - Prob. 16CCh. 1 - Prob. 18EPCh. 1 - Prob. 19.1EPCh. 1 - Prob. 19.2EPCh. 1 - Prob. 19.3EPCh. 1 - Prob. 19.4EPCh. 1 - Prob. 19.5EPCh. 1 - Prob. 19.6EPCh. 1 - Prob. 19.7EPCh. 1 - Prob. 19.8EPCh. 1 - Prob. 19.9EPCh. 1 - The primary reason that not-for-profit (NFP)...Ch. 1 - Matching. (LO1-1, LO1-2, LO1-4, LO1-5) For each...Ch. 1 - Prob. 21EP
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Similar questions
- Differentiate accounting for government and not-for-profit organization from a business enterprise.arrow_forwardWhy do we need accounting for non-profit organizations?arrow_forwardDefine Not-for-Profit organizations. Explain what distinguishes governmental not-for-profit organizations from nongovernmental, not-for-profit organizations. Why is such a distinction necessary? Mention the objectives of financial reporting of not-for-profit organizations?arrow_forward
- Distinguish between government and not-for-profit organizations from business entities and describe how the distinction affects their accounting processes.arrow_forwardWhat is the difference between For-profit organizations and Not-for-profit organizations?arrow_forwardState the meaning of ‘Not- for- Profit’ Organisations.arrow_forward
- why do managers of governmental and not for non profit organizations need to understand financial information as much as profit seeking organizationarrow_forwardWhat distinguishes for-profit and not-for-profit organisations?arrow_forward13. Discuss how characteristics of not-for-profit organizations differ from for-profit organizations in accounting.arrow_forward
- What is the major difference between a for-profit and a not-for-profit organization?arrow_forwardAccounting purpose of Governmental and not-for-profit organizations are different from business organizations due to the following reasons EXCEPT: a. Different purposes in society O b. Financed by resource providers who do not expect benefits proportional to the resources they provide c. Management has a special duty to be accountable for how resources are used in providing services O d. Accountable to the stakeholders of an organizationarrow_forwardExamine the role of accounting theory in addressing the challenges of measuring and reporting the performance of non-profit organizations and government entities.arrow_forward
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