ACCT 350, Assignment 1a
Name: _____________________________
Please email all assignments to acct350@wallawalla.edu. Assignment 1a is due no later than mid-night on Thursday. We will
attempt to complete most of this assignment in class on Tuesday.
DEFINITIONS, SCOPE, AND TERMINOLOGY
1.
T or F: We will only study the accounting and reporting of the Federal government this quarter, and will ignore state and
local governments.
2.
T or F: The terms non-profit and not-for-profit are used interchangeably, although not-for-profit is technically more
appropriate.
IMPORTANCE OF G/NFPs
3.
List at least three factors that illustrate the importance of government and not-for-profit (G/NFP) organizations to the
typical WWU accounting or business major.
4.
As a way to illustrate the breadth and depth of NFP integration into our society, review the NTEE classification system of
NFPs listed at the end of the instructor notes for 1a. For at least five of the 25 NTEE classifications, list the name of a
specific organization that fits into the classification. For example, Classification A includes Positive Life Radio and
Walla Walla Symphony (don’t use these specific examples).
5.
On the web, go to www.portwallawalla.com. On the top menu under Community Demographics for Walla Walla County,
find Chart #23 – WW County’s Largest Employers.
(A) Of the largest 20 employers, how many are G/NFP?
(B) T or F: The percent of the workforce in WW County employed by G/NFPs is likely higher than the national average.
SPENDING THE PEOPLE’S MONEY
6.
(A) Who “owns’ a G/NFP?
(B) Who “owns” the City of College Place?
(C) Who “owns” WWU?
7.
(A) Complete the table below, listing the names of each branch of gov’t at the various levels of government (be specific)
City
County
State
Federal
Executive Branch?
Legislative Branch?
Judiciary Branch?
(B) Which branch proposes the budget?
(C) Which branch approves the budget?
(D) For an enacted budget, what are the approved budget spending amounts called?
8.
Scan through the instructor notes about states not passing budgets on time. In most states, if the legislature fails to pass a
budget on time and no new spending is authorized, the government may be forced to shut down. Which states are in
danger of not passing their budgets on time in 2016?
INTERPERIOD EQUITY
9.
What is interperiod equity?
10.
Is this principle being upheld or violated by our Federal government? How can you tell?
11.
Do you agree with the following quote? Why or why not? “Burdened with an obligation to pay government debt they did
not incur, young Americans – those born between the early 1980s and the beginning of the 21st century, or millennials –
begin life at least partially robbed of their birthrights.” See http://www.thefiscaltimes.com/Columns/2015/05/12/How-Government-Debt-Disinherited-Next-Generation-and-How-Fix-It
12.
Why is accountability hard to impose in G/NFPs, according to Milton Freidman?
UNIQUE CHARACTERISTICS OF G/NFPs
13. How do the characteristics of G/NFPs differ from those of a for-profit corporation?
14.
What is a Benefit or Flexible Purpose Corporation? Name an example. See instructor notes.
15.
List some characteristics that differentiate the following entities from each other:
(A) For-profit taxi-cab business versus a not-for-profit city bus system.
(B) For-profit hospital (e.g. Kaiser Permanente) versus not-for-profit hospital (e.g. WW General).
(C) For-profit bank (e.g. Baker Boyer Bank) versus not-for-profit credit union (e.g. Blue Mountain Credit Union).
16.
(A) What factors should be considered to determine if a NFP is governmental or not?
(B) Identify which organizations in the following list you think are governmental (circle/underline them): Providence St.
Mary Medical Center, Veteran Affairs Medical Center, National Public Radio, Positive Life Radio, Walla Walla High
School, Walla Walla Valley Academy, Walla Walla University, Walla Walla Community College, Mt. Hope Cemetery,
Mountain View Cemetery, Walla Walla Landfill, Walla Walla Public Library, Elks Club, Republican Party of Walla
Walla County, Walla Walla Airport, Martin Field, Walla Walla Chapter of the National Audubon Society, Government
Employees Federal Credit Union, Christian Aid Center, Walla Walla Housing Foundation.
ACCOUNTING STANDARDS
17. Which organization sets GAAP for each of the following, the FASB, GASB, or FASAB?
(A) Walla Walla University
(F) Garfield County Hospital (Pomeroy, WA)
(B) Walla Walla Community College
(G) Walla Walla VA Medical Center
(C) Washington State University
(H) Walla Walla Valley Academy
(D) City of College Place
(I) Walla Walla High School
(E) Walla Walla General Hospital
(J) United States Post Office
BASIS OF ACCOUNTING
18. (A) What type(s) of assets/liabilities are on the balance sheet under the pure cash basis?
(B) What type(s) of assets/liabilities are on the balance sheet under the modified accrual basis?
(C) What type(s) of assets/liabilities are on the balance sheet under the full accrual basis?
(D) Is government accounting moving toward (or away from) a for-profit, accrual basis model?
19.
(A) What is a fund?
(B) Why is fund accounting necessary for G/NFPs?
20.
(A) Provide a specific example of an exchange transaction and a non-exchange transaction.
(B) How is a non-exchange transaction related to redistribution of wealth? Explain.