| A | Given a set of financial statements, explain the theory, objectives and conceptual framework underlying financial statement reporting for governmental and private nonprofit organizations; and the authoritative organizations (FASB, GASB, FASAB) that set accounting standards and how these organizations develop Generally Accepted Accounting Principles (GAAP) that guide practitioners and others in the preparation of annual reports and financial statements. |
Key Concepts:
- Explain the importance of accounting for governments and nonprofit organizations.
- Determine the importance of the accounting standard setting process.
- Analyze the relationship of the authoritative organizations and the hierarchy of their rules.
- Evaluate the role of Generally Accepted Accounting Principles in financial reporting.
| B | Given a governmental or nonprofit entity, compare governmental and nonprofit entities to for-profit entities, and analyze the principles of accounting and financial reporting that pertain to these entities. |
Key Concepts:
- Explain the differences between for-profit and not-for profit organizations including governments.
- Determine why an entity cannot merely be classified according to its function.
- Analyze specific organizations to determine if they are governmental or nonprofit organizations.
- Evaluate the differences in the reporting between these various types of entities.
