Covering the essentials of fund accounting, this flexible book introduces the reader to the basic accounting principles at work in both governmental and not-for-profit organizations. This brief book divides most of the chapters into independent sections, which may be covered as separate units. Now includes a print update on GASB 34, packaged with the volume.Topics addressed include government and not-for-profit environments and characteristics, the use of funds in governmental accounting, the budgetary process, special revenue funds, debt service funds and capital projects funds, proprietary and fiduciary funds, general reporting principles, government-wide financial statements, fundamentals of accounting and reporting and analysis of financial statements and financial condition.For Accountants and Auditors studying for professional certification.
Table of Contents
1. Government and Not-for-Profit Environment and Characteristics.
2. The Use of Funds in Governmental Accounting.
3. The Budgetary Process.
4. General and Special Revenue Funds—An Introduction.
5. General and Special Revenue Funds—Special Problems.
6. Debt Service Funds and Capital Projects Funds.
7. Proprietary Funds.
8. Fiduciary Funds.
9. Reporting Principles and Preparation of Fund Financial Statements.
10. Government-Wide Financial Statements.
11. Federal Government Accounting and Reporting.
12. Accounting for Not-for-Profit Organizations.
13. Accounting for Health Care Organizations.
14. Analysis of Financial Statements and Financial Condition.
15. Fundamentals of Accounting.
This basic-level text on governmental and not-for-profit accounting has been updated to incorporate the recent changes in accounting standards. These new standards (such as GASBStatement No. 34) are presented in "plain English" and reinforced with illustrations drawn from financial statements issued by governments that have implemented the new standards earlier than required. To emphasize the practical, the application of "debits and credits" has been supplemented with a new chapter on financial statement analysis and with new examples in the feature called Financial Reporting in Practice. This text is organized to permit its use by different types of readers. For example, people interested only in accounting for state and local governments can skip the chapters on the federal government, not-for-profit organizations, and health care entities. People interested only in not-for-profit hospitals can concentrate on the not-for-profit organization, health care entities, and financial statement analysis chapters. Public administration students who have not had a course in basic accounting should start with the chapter on the fundamentals of accounting and draw selectively on the governmental, not-for-profit, health care, and financial statement analysis chapters. Consistent with its focus on flexibility, this text offers the opportunity to work questions and cases, exercises, and problems at the end of each chapter to students who want to emphasize the accumulation, reporting, and analysis of financial information. On the other hand, students interested in a more conceptual approach can avoid the presentation of detailed journal entries and financial statements by concentrating on the conceptual and analytical aspects of the text, questions, cases, exercises, and problems. To make this text even more flexible, we divided most of the chapters into independent modules, which can be covered as separate units. Thus a section or two may be assigned for a particular class meeting, while an entire chapter may be assigned for another meeting. Because of its built-in flexibility, this text can be used by the following groups: Accounting majors who wish to learn the fundamentals of governmental and not-for profit accounting in less than a full semester. Accounting majors who desire a full semester course on governmental and not-for profit accounting. Nonaccounting majors (e.g., students in public administration programs) who desire a basic understanding of general, governmental, not-for-profit, and health care accounting, financial reporting, and financial statement analysis. Persons employed by governmental and not-for-profit organizations, including the federal government, health care entities, colleges and universities, and voluntary health and welfare organizations. Persons preparing for civil service examinations. Persons preparing for the Uniform Certified Public Accountant (CPA) and the Certified Government Financial Manager (CGFM) examinations. Persons who wish, on their own, to learn about the accounting and reporting practices of governmental and not-for-profit organizations. NEW FEATURES OF THIS EDITION Coverage of GASBStatement No. 34 GASBStatement No. 34(Basic Financial Statements--and Management's Discussion and Analysis-for State and Local Governments) was newly issued when the previous edition of this text was published. Because of its long implementation period--some aspects of GASBStatement No. 34are still in the implementation process-the previous edition emphasized earlier standards. This edition, however, contains significant changes to fully incorporate the requirements of GASBStatement No. 34. To simplify presentation of the major changes brought about by GASBStatement No. 34,we deliberately separated accountingwithin the fundsfro