Explain how organizations in the not for profit sector differ from organi zations in the public sector or for profit business sector. Provide an exam ple of an entity in each sector. 13 2. Discuss some of the differences in the preparation and presentation of the operating statements of nongovernmental not for profit entities and govern mental not for profit entities reporting as business type entities. 13 3. What financial statements does FASB require NFPs to present? 13 4. What are the three categories into which NFPs must classify their net assets? Describe which net assets are included in each category. Would board designated net assets be reported as temporarily restricted net assets? Explain your answer. 13 5. Why is a statement of functional expenses considered an important financial statement for a voluntary health and welfare organization? How does a state ment of functional expenses differ from the expense section of a statement of activities? 13 6. What is the difference between an unconditional and a conditional pledge? How are the two pledges reported? 13 7. Distinguish between program services expenses and supporting services expenses. Why is it important that NFPs report expenses for program ser vices separately from those for supporting services?
Attachments:
Case 13 1.pdf