Governmental vs. For-Profit Accounting Government collects taxes from nonprofit and for-profit…


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Governmental vs. For-Profit Accounting Government collects taxes from nonprofit and for-profit… 1 answer below » Governmental vs. For-Profit Accounting Government collects taxes from nonprofit and for-profit entities; government itself is not taxed. Due to that and many other things, accounting in governmental agencies is different than the accounting needed in for-profit entities. According to Granof and Wardlow (2003), these differences in accounting methods and reporting needs are derived directly from a number of different parameters: Document Preview: NONPROFIT ORGANIZATION From “Barron’ View complete question » Governmental vs. For-Profit Accounting Government collects taxes from nonprofit and for-profit entities; government itself is not taxed. Due to that and many other things, accounting in governmental agencies is different than the accounting needed in for-profit entities. According to Granof and Wardlow (2003), these differences in accounting methods and reporting needs are derived directly from a number of different parameters: Document Preview: NONPROFIT ORGANIZATION From “Barron’s Business Dictionaries: Dictionary of Accounting Terms” © 2014 Barron’s Educational Series, Inc group, institution, or corporation formed for the purpose of providing goods and services under a policy where no individual (e.g., stockholder, trustee) will share in any profits or losses of the organization. Profit is not the primary goal of nonprofit entities. Profit may develop, however, under a different name (e.g., surplus, increase in fund balance). Assets are typically provided by sources that do not expect repayment or economic return. Usually, there are restrictions on resources obtained. Examples of nonprofit organizations are governments, charities, universities, religious institutions, and some hospitals. Most nonprofit organizations have been granted exemption from federal taxes by the Internal Revenue Service. Many of these organizations refer to themselves according to the IRS Code section under which they receive exempt status (i.e., 502(c)(3) organization). This identification lets donors know that their contributions to this organization may be deductible for income tax purposes.
© 2014 Barron’s Educational Series, Inc Persistent URL to the Entry: http://search.credoreference.com/content/entry/barronsa/nonprofit_organization/0 APA Nonprofit organization. (2014). In Barron’s business guides: Dictionary of accounting terms. Hauppauge, NY: Barron’s Educational Series. Retrieved from http://search.credoreference.com/content/entry/barronsa/nonprofit_organization/0 MLA “Nonprofit Organization.” Barron’s Business Guides: Dictionary of Accounting Terms. Hauppauge: Barron’s Educational Series, 2014. Credo Reference. Web. 9 Nov. 2015. Chicago “Nonprofit Organization”. 2014. In Barron’s Business Guides: Dictionary of Accounting Terms. Hauppauge: Barron’s Educational Series. http://search.credoreference.com/content/entry/barronsa/nonprofit_organization/0 Harvard Nonprofit organization (2014). [Online]. In Barron’s business… Attachments: Governmental-….pdf NONPROFIT-ORG….pdf View less » Jan 30 2016 02:43 AM

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