Because the basic purpose of a business is to generate revenues sufficient to cover all costs of providing the services and to generate a return for owners, these measurements relate directly to the objectives of the owners and are seen to indicate management success or failure during a given period of time.
Nonauthoritative—Four articles from The Journal of Accountancy 3. The FASB establishes accounting and financial reporting standards for all nonprofit organizations except for government nonprofit organizations.
All governmental and not-for-profit organizations Answer: c Business-type organizations only d. Reporting to management Answer: c 4. Which of the following is a distinguishing characteristic of a nonbusiness organization?
The GASB i. Expenditures are measured in governmental fund accounting.