Accounting Question

Overview

What is fund accounting? According to the authors of your textbook, Debra C. Jeter and Paul K. Chaney (2022), “Accounting for nonbusiness organizations is referred to as fund accounting. Nonbusiness organizations are economic entities that are organized to provide a socially desirable service without regard to financial gain. In contrast, business enterprises are designed to earn a return on investment for equity investors, operate in a competitive market, and face liquidity concerns.”

In this short paper, you will explore fund accounting, including the principles, standards, and methods used. You will also explain the differences between government entities, nonprofit entities, and partnerships.

Directions

Use the resources for the principles, standards, and methods for the different types of organizations, linked in the

Supporting Materials

section, and your textbook to research fund accounting. Also use the resources to research the differences between government entities, nonprofit entities, and partnerships.

Specifically, you must address the following rubric criteria:

Explain the principles and methods used for fund accounting.

Explain how government entities use fund accounting.

1. Explain how nonprofit entities use fund accounting.

Describe at least one rule for each of the following:

Government entities

Nonprofit entities

2. Partnerships

Your response should include a total of three to six rules.

1. Explain at least three main differences between the following:

Government entities
Nonprofit entities

Partnerships

Supporting Materials

The following resources support your work on the assignment:

Website: FASB Accounting Standards Codification and Generally Accepted Accounting Principles (GAAP)
This website contains all of the codification codes and GAAP to complete Part Two. The following are access instructions:

Access the FASB Accounting Standards Codification website.

On the right side of the screen under Basic View, select I’m not a robot and pass through the reCAPTCHA system. Select Access the Basic View.

Accept the license agreement for the Basic View.

Find each topic/subtopic listed.

Website: Financial Accounting Standards Board (FASB) Accounting Standards Update for Not-for-Profit Financial Reporting
This is a presentation of new guidance to accounting standards for the financial statements of nonprofit entities.

Website: Governmental Accounting Standards Board (GASB) Governmental Accounting Research System (GARS)
This website contains accounting standards and methods for government entities. The following are access instructions:

Access the GASB Governmental Accounting Research System website.

On the right side of the screen under Basic View, select I’m not a robot and pass through the reCAPTCHA system. Select Access the Basic View.

Accept the license agreement for the Basic View.
Find each topic/subtopic listed.

Website:

Governmental Accounting – Key Differences -7210

This resource addresses the key differences in accounting and financial reporting for governments compared to commercial business enterprises.