After studying this chapter you should understand:
Governments and not-for-profits engage in a variety of functions that are similar to those carried out by businesses. They range in size from the small gift shops of churches to multibillion-dollar regional power authorities.
Thus, in this chapter we will look at accounting principles applicable to business accounting. As shall soon be evident, the business-type activities of governments and not-for-profits are accounted for similarly to corresponding enterprises in the private sector. Their financial statements are on a full rather than a modified accrual basis, and their measurement focus is on all economic resources, ...