Discussion Questions and Problems

Discussion Questions

1. What is the fundamental difference between a not-for-profit organization

and a for-profit company? 2. What are the three defining characteristics of NFPOS?

3. How do governments differ from private NFPOs?

4. Since NFPOs do not have as an objective making a profit for their own- ers, why should they be concerned about the financial aspects of their operations?

5. Why dor NFPOs present income statements?

6. What is fund" in NFPO accounting?

7. Identify the financial statement analysis ratios that have no application to NFPOS.

8. Why are efficiency measures particularly useful in the assessment of NFPOs?

9. Why are budgets of such great importance for NFPOs and governments?