ACCT 438 Chapter 1 CAFR research questions 1. What are the major difference between businesses and Governments and Not for profit organizations? How these differences will impact financial reporting for GNP from your own opinion? Some differences between them would be one being the accounting standards government follows the Gasb which is the government accounting standards board and the non profit follows the fask which is fianasial accounting board. Another difference is the statements government does statement of net position and nonprofits does statement of financial position, lastly would be the reporting every year business put together a CAFR which is a comprehensive annual financial report which not for profit does not. Business uses different financial reports with different needs 2. What is interperiod equity? Give an example. Why this is especially important for a government? 3. What is the purpose of preparing governmental wide financial statements? What activities are included in the govermental wide financial statements? Explain each of them 4. What are component units? 5. What is the purpose of preparing fund financial statements? Name, explain, and give examples of each fund 6. How the accounting principle of fund financial statements is different from governmental wide financial statements? Why