Read the journal article “Cracking the Nonprofit Accounting Code.” Based on the information presented in the article, discuss:
a.How and why does the accounting system used by governmental/nonprofit entities differ from the system used by for-profit entities?
b.How does the annual financial report of a governmental/nonprofit entity differ from the report of a for-profit entity?
c.The user of a for-profit financial report is usually interested in the bottom line, net income. What are some top interests of the user of the financial reports of a governmental/nonprofit entity? Reference this week’s lecture to support your post.
State or local government entities can engage in governmental activities as well as business-type activities. Provide two examples of each activity type. Discuss how and why accounting and financial reporting differs between the two types.