Governmental and Nonprofit Accounting:
ENVIRONMENT AND CHARACTERISTICS
ANSWERS TO QUESTIONS
a. The similarities of accounting for profit-seeking and G&NP organizations include:
1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that for a similar private business (e.g., electric utility).
b. Among the unique aspects of G&NP organization accounting are:
1. Fund accounting—designed to separate resources according to the purposes for which they may be used and to …show more content…
1. The Governmental Accounting Standards Board (GASB) was established in 1984 as the recognized body to set authoritative standards for state and local government accounting and financial reporting. The GASB recognized the effective National Council on Governmental Accounting (NCGA) pronouncements and excerpts from certain AICPA publications as "authoritative" in 1984, and subsequently has issued numerous Statements and Interpretations.
2. The Financial Accounting Standards Board (FASB) assumed responsibility for all nonbusiness organization accounting and financial