Solutions for Essentials of Accounting for Governmental and Not-for-Profit Organizations, 15th Edition Copley
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Course
Cost accounting
Institution
Cost Accounting
Complete Solutions Manual for Essentials of Accounting for Governmental and Not-for-Profit Organizations 15e 15th Edition by Paul Copley. ISBN 8902
Full Chapters Solutions are included - Excel files solutions included too
Chapter 1: Introduction to Accounting and Financial Reporting for Gover...
Chapter 01 - Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit
Organizations
Solutions Manual
ESSENTIALS OF ACCOUNTING FOR GOVERNMENTAL
AND NOT-FOR-PROFIT ORGANIZATIONS:
15TH EDITION
.
1-1
, Chapter 01 - Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit
Organizations
CHAPTER 1 Introduction to Accounting and Financial Reporting for Governmental and
Not-for-Profit Organizations
1-1. THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 2 THROUGH 9 WILL
DIFFER FROM STUDENT TO STUDENT ASSUMING EACH HAS A DIFFERENT CAFR.
1-2.
1) ORGANIZATIONAL PURPOSES: WHILE THE PURPOSE OF A COMMERCIAL BUSINESS
IS TO GENERATE A PROFIT FOR THE BENEFIT OF ITS OWNERS, GOVERNMENTS EXIST
FOR THE WELL BEING OF CITIZENS BY PROVIDING PUBLIC SERVICES – WHETHER OR
NOT THE SERVICES ARE PROFITABLE UNDERTAKINGS.
2) SOURCES OF REVENUES: GOVERNMENTS DERIVE MANY OF THEIR RESOURCES
FROM TAXES. INDIVIDUALS AND BUSINESSES PAY TAXES TO AVOID PENALTY, NOT
VOLUNTARILY BECAUSE THEY PERCEIVE GOVERNMENT SERVICES TO BE OF VALUE
AND FAIRLY PRICED. SINCE TAXES DO NOT INVOLVE AN EARNINGS PROCESS, THE
TIMING OF THE RECOGNITION OF TAX REVENUE IS NOT ALWAYS CLEAR.
3) POTENTIAL FOR LONGEVITY: BECAUSE THE U.S. AND STATE CONSTITUTIONS
GRANT STATE AND LOCAL GOVERNMENTS THE ABILITY TO TAX, GOVERNMENTS
VERY RARELY GO OUT OF BUSINESS. THIS LONG-TERM VIEW OF OPERATIONS
CHANGES THE FOCUS OF ACCOUNTING FROM ONE OF NEAR-TERM RECOVERY OF
AMOUNTS INVESTED IN ASSETS TO A LONGER-TERM FOCUS ON THE SUSTAINABILITY
OF SERVICES AND THE ABILITY TO MEET FUTURE DEMAND.
4) RELATIONSHIP WITH STAKEHOLDERS: TAXES ARE CREATED THROUGH THE
LEGISLATIVE PROCESS BY OFFICIALS ELECTED BY THE CITIZENS. BECAUSE CITIZENS
AND BUSINESSES ARE THEN REQUIRED TO PAY THESE TAXES, GOVERNMENTS HAVE
AN OBLIGATION TO DEMONSTRATE ACCOUNTABILITY FOR THESE PUBLIC FUNDS.
5) ROLE OF THE BUDGET: GOVERNMENT BUDGETS ARE EXPRESSIONS OF PUBLIC
POLICY AND OFTEN CARRY THE AUTHORITY OF LAW, PREVENTING PUBLIC OFFICIALS
FROM SPENDING OUTSIDE THEIR BUDGETARY AUTHORITY. THE INCREASED
IMPORTANCE OF BUDGETS IS REFLECTED IN GOVERNMENT FINANCIAL REPORTS BY A
REQUIRED REPORT COMPARING BUDGETED AND ACTUAL AMOUNTS.
1-3. THE THREE STANDARDS SETTING BODIES IN QUESTION ARE THE FEDERAL ACCOUNTING
STANDARDS ACCOUNTING ADVISORY BOARD (FASAB), THE GOVERNMENTAL
ACCOUNTING STANDARDS BOARD (GASB), AND THE FINANCIAL ACCOUNTING
STANDARDS BOARD (FASB). THE FASAB ESTABLISHES ACCOUNTING AND REPORTING
STANDARDS FOR THE FEDERAL GOVERNMENT AND ITS AGENCIES UNLESS OBJECTED TO
BY ONE OF THE "PRINCIPALS" (THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND
BUDGET, THE COMPTROLLER GENERAL OF THE UNITED STATES (GOVERNMENT
ACCOUNTABILITY OFFICE), AND THE SECRETARY OF THE DEPARTMENT OF THE
TREASURY). WHEN THE "PRINCIPALS" APPROVE, THE FASAB STANDARDS BECOME
GAAP. THE GASB SETS ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR
STATE AND LOCAL GOVERNMENTAL ORGANIZATIONS, INCLUDING THOSE NOT-FOR-
PROFIT ORGANIZATIONS THAT ARE DETERMINED TO BE STATE AND LOCAL
GOVERNMENTS. THE FASB SETS ACCOUNTING AND FINANCIAL REPORTING STANDARDS
FOR PROFIT SEEKING BUSINESSES AND FOR NONGOVERNMENTAL, NOT-FOR-PROFIT
ENTITIES.
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1-2
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