Accounting Discussions

  
Questions in Regards to Accounting for Non Profit OrganizationsPart 1In a for-profit firm the budget figures are never reported external to the organization. Is the same true of a not-for-profit firm? Why or why not?How would it be possible that revenues might be measurable but not available? Can you give an example of that situation?In your opinion, which makes more sense when reading a financial statement in terms of revealing the true financial picture of a firm to a reader of the financial statements, GAAP or Budget basis?Part 2A concerned citizen provides resources and establishes a trust with the local government. What factors should be considered in determining which fund to report the trust activities? Why does it matter who the trust benefits? The government entity needs to account for the revenue regardless, don’t they?Why would it matter whether the trust benefits an individual or the government? Is intent of a trust the primary factor used to determine revenue recognition do you think?What is a premium on bonds and why would it exist on the books?
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