'Interm Acct Essay\r'

'1. What is the defining trace between for-profit businesses and not-for-profit, including show upments? What are the implications of this distinction for financial inform? Governments and not-for-profits provide services that are targeted to groups of constituents who advocate a political or social cause or who carry out research or new(prenominal) activities for the bet destinationent of society. The objectives of governments and not-for-profits cannot generally e expressed in dollars and cents and are often ambiguous. Government and not-for-profit have relationships (unlike with a business) with the parties providing their resources.\r\n2. Why is the budget a far much important document in both governments and not-for-profits than it is in businesses? Revenues and expenditures are controlled or strongly influenced through the budgetary process.\r\n3. What is meant by â€Å"interperiod equity”? What is its consequences for financial reportage? The term interperiod equ ity is the concept that emphasizes that entities should not transfer cost eve to incoming years, let alone future generations. 4. Why may the â€Å"matching concept” be less relevant for governments and not-for-profits than it is for businesses? 5. What is the significance for financial reporting of the many restrictions that are placed upon a government’s resources?\r\n6. Why is it difficult to develop account statement principles that are appropriate for governments inwardly the same house and even more difficult to develop them for governments within different categories? 7. What is the significance for financial reporting of a government’s power to tax? How does it run the government’s overall financial potency? 8. Why has it proven especially difficult to establish accounting principles that enable governments to satisfy all cardinal elements of GASB’s first objective of financial reporting in a single statement of receipts and expendi tures or balance sheet?\r\n'