Assignment
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Reck, J., Lowensohn, S., & Wilson, E. (2016). Accounting for Governmental and Nonprofit Entities (17th ed.). New York, NY: McGraw-Hill Higher Education.
• Chapter 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities
• Chapter 2: Principles of Accounting and Financial Reporting for State and Local Governments
• Chapter 3: Governmental Operating Statement Accounts; Budgetary Accounting
1). Governmental/Nonprofit Accounting System [CLO: 1]. Read the journal article "Cracking the Nonprofit Accounting Code." Based on the information presented in the article, discuss:
a. How and why does the accounting system used by governmental/nonprofit entities differ from the system used by for-profit entities?
b. How does the annual financial report of a governmental/nonprofit entity differ from the report of a for-profit entity?
c. The user of a for-profit financial report is usually interested in the bottom line, net income. What are some top interests of the user of the financial reports of a governmental/nonprofit entity? Reference this week's lecture to support your post.
2). Governmental and Business-Type Activities [CLOs: 1,2]. State or local government entities can engage in governmental activities as well as business-type activities. Provide two examples of each activity type. Discuss how and why accounting and financial reporting differs between the two types. Reference this week's lecture to support your post.
Text
Reck, J., Lowensohn, S., & Wilson, E. (2016). Accounting for Governmental and Nonprofit Entities (17th ed.). New York, NY: McGraw-Hill Higher Education.
• Chapter 4: Accounting for Governmental Operating Activities - Illustrative Transactions and Financial
Statements
• Chapter 5: Accounting for General Capital Assets and Capital Projects.
3). Taxable Property Lien [CLO: 2].Because a levy of property taxes creates a lien on taxable property, there is no need to reduce anticipated revenues for uncollectible amounts or to write off delinquent taxes.
Do you agree or disagree with this statement? Why or why not? Reference this week's lecture to support your post.
4). Capital Lease vs. Operating Lease [CLO: 2]. Discuss the differences between a capital lease and an operating lease. Review the financial statements of local governmental or not-for-profit entities and find an example of each lease type.
Your response should include details of each lease, the name of the entity, and advantages/disadvantages to the organization. Reference this week's lecture to support your post.